BIS Adds Macau to China Chip Controls
The Bureau of Industry and Security this week updated its October chip controls on China to also extend the restrictions to Macau. BIS said Macau -- as a special administrative region of China -- presents a “risk of diversion” of export controlled items and should be subject to the same license requirements introduced by BIS’ October rule, which was intended to restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors (see 2210070049).
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The interim final rule and "update," effective Jan. 17, adds Macau to the scope of the Regional Stability (RS) controls implemented under the October rule but doesn’t change Macau’s status under the Export Administration Regulations. BIS said Macau will continue to be treated as a separate destination from China but will face similar chip export restrictions, particularly because China “grants Macau limited autonomy in economic and commercial relations.”
BIS also added Macau to the “destination scope” of its advanced computing foreign direct product rule and its supercomputer FDP rule; added it as an additional destination under the October rule’s end-use controls; made Macau subject to the rule’s U.S. persons restrictions; and more. BIS said “China has invested large amounts of capital to develop a special economic zone to develop semiconductors in Macau,” adding that it has “diversion concerns” about the region.
All exports that now require a license as a result of this change that were aboard a carrier to a port as of Jan. 17 may proceed to their destinations under the previous eligibility as long as they have been exported by Feb. 16, BIS said. Any item not exported by midnight Feb. 16 will require a license. The agency stressed that this savings clause is “specific and limited to the new controls for Macau” and doesn’t extend the savings clause for BIS’ October rule.
The agency is accepting public comments on the new chip controls, including the addition of Macau, through Jan. 31 (see 2212050068). BIS said it plans to publish a “subsequent rule to respond to the comments received” and update the original October rule (see 2212140038). BIS Undersecretary Alan Estevez said that update may lead to minor clarifications but is unlikely to include major revisions (see 2212060059).