U.S. companies should expect more retaliation from China if the Bureau of Industry and Security adds more major Chinese technology firms to its Entity List this year, Paul Trulio, a China and technology policy expert, said during an event last week hosted by the Center for Strategic and International Studies. Trulio and other panelists also said it’s unclear exactly how a possible second Trump administration may tweak U.S. export control policy toward Beijing, but they said it’s possible former President Donald Trump, if reelected, could significantly increase restrictions on Chinese firms through potential financial sanctions and may pressure allies to do the same.
The Bureau of Industry and Security added 11 parties to its Entity List this week for procuring items to support Iranian drone programs, China’s military modernization efforts or Russia’s military. The additions, outlined in a final rule released April 10 and effective April 11, include technology companies, logistics firms and one person based in either China, Russia or the United Arab Emirates.
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The Bureau of Industry and Security on April 2 renewed the temporary denial order for Russian air cargo carrier Aviastar for one year after finding it continues to violate U.S. export controls. The agency said the airline has continued to illegally operate aircraft subject to the Export Administration Regulations, including for flights within Russia and between Russia and China.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
A Bureau of Industry and Security rule released last week (see 2403290060) that updated and corrected portions of the agency’s October semiconductor export controls (see 2310170055) also added a new license exception and offered clarifications to export guidance issued by BIS over the last year. The changes take effect April 4, and comments are due by April 29.
The Bureau of Industry and Security is expecting to soon finalize its proposed rule on License Exception Strategic Trade Authorization and is close to publishing new U.S. persons controls to restrict activities that support foreign military, security or intelligence agencies, said Thea Kendler, the agency’s assistant secretary for export administration.
The Bureau of Industry and Security is looking to expand its validated end-user program, which it hopes will allow more U.S. exporters to sell products to credible foreign customers without having to first apply for a license, said Thea Kendler, the agency’s assistant secretary for export administration.
The Bureau of Industry and Security on March 29 released an interim final rule to update, correct and clarify its October 2023 chip controls that placed new restrictions on exports of advanced semiconductors and semiconductor manufacturing equipment to China. The 186-page rule takes effect April 4 and seeks public comments on the changes by April 29.
The head of the Bureau of Industry and Security this week called on companies to double down on their export compliance and due diligence efforts, saying the agency is reaching out to exporters to make sure they’re catching red flags and monitoring for possible export control evasion.