Despite requests from industry, the Bureau of Industry and Security may push back on publishing a comprehensive list of advanced Chinese semiconductor fabrication facilities that are subject to the October chip controls, said Kevin Wolf, an Akin Gump lawyer and former BIS official. But the agency could meet industry halfway and publish a list similar to its military end-user list (see 2012220027), which could be a regularly updated, noncomprehensive set of facilities subject to the agency’s China chip controls.
The Bureau of Industry and Security has drafted new guidance for its October rule that expanded certain China-related chip controls (see 2210070049) and hopes to release it soon, said Thea Kendler, the agency’s assistant secretary for export administration. Kendler, speaking during a virtual conference hosted by the Massachusetts Export Center last week, also touched on the rule’s expiring temporary general license and urged industry to submit feedback on the new restrictions before the deadline this week.
The U.S. should double down on its resources, oversight and enforcement to prevent Russia from acquiring semiconductors and other dual-use goods used to power its war against Ukraine, the Silverado Policy Accelerator said in a report this week. If the broad Western export controls against Russia aren’t followed up with strict enforcement, the think tank said, Moscow will continue to find ways to import chips, including from China.
ASML, the Netherlands’ flagship semiconductor company, said it saw higher-than-expected fourth quarter revenue and expects a 25% increase in net sales this year despite challenges caused by existing and potential future export controls against China. The company also declined to predict whether the Netherlands will join the U.S. in imposing similar chip export restrictions but warned that broad controls could severely damage the semiconductor industry.
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The U.S. should take more steps to counter corruption and sanctions evasion efforts by Russian kleptocrats, including through a new multilateral anti-corruption council, Sen. Sheldon Whitehouse, D-R.I., said this week. While he applauded recent funding passed by Congress to provide more resources for government enforcement efforts, he said lawmakers have more work to do to close sanctions loopholes.
The top Republican on the House Foreign Affairs Committee said the Commerce Department hasn’t yet provided “acceptable responses” to oversight questions about the agency’s technology export controls. In a letter sent last week to Commerce, Rep. Michael McCaul, R-Texas, said the House committee may “use the authorities available to it to enforce these requests as necessary, including through compulsory process.”
U.S. and Japanese officials this week said they are hopeful the two countries will soon align their semiconductor export controls against China, adding to optimism within the Commerce Department that U.S. allies will eventually agree on the chip restrictions. The U.S. and Japan have made “progress” during recent talks, Japanese Ambassador Koji Tomita said, adding that they could reach more concrete results shortly.
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).
Future U.S. presidential candidates should put forth an aggressive agenda to tackle China trade issues, including stronger export controls, experts with the American Enterprise Institute said in a blog post this month. The post, by AEI senior fellows Derek Scissors, Zack Cooper and Dan Blumenthal, includes a range of suggestions for presidential candidates to form a “comprehensive policy on how to approach the economic, military, and political threats that China poses.”