The Trump administration successfully persuaded the Dutch government to not renew an export license for a Dutch chip manufacturer, which was poised to sell the technology to China, according to a Jan. 6 Reuters report. The administration “mounted an extensive campaign” to block the sale, which included lobbying from Secretary of State Mike Pompeo and White House officials, who shared “classified intelligence” with the Netherlands’ prime minister, Reuters said. The campaign began in 2018 after the Netherlands granted an export license to ASML, a semiconductor equipment company, to sell “its most advanced machine” to a Chinese customer.
An Iranian businessman was sentenced to 46 months in prison for illegally exporting carbon fiber from the U.S. to Iran, the Justice Department said Nov. 14. Behzad Pourghannad worked with two others between 2008 and 2013 to export the carbon fiber to Iran from third countries using falsified documents and front companies, the agency said.
Huawei is urging suppliers to move operations offshore to avoid U.S. sanctions and export controls, which would violate U.S. law, according to a Dec. 3 Reuters report. The Chinese technology giant has been “openly advocating” for companies to escape the jurisdiction of U.S. controls so sales can continue, Commerce Secretary Wilbur Ross told Reuters. “Anybody who does move the product out specifically to avoid the sanction ... that’s a violation of U.S. law,” Ross said. “So here you have Huawei encouraging American suppliers to violate the law.”
A U.S. foundation representing organizations in the semiconductor technology sector will move to Switzerland due to concerns over U.S. trade restrictions, according to a Nov. 25 Reuters report. RISC-V Foundation, a non-profit, said it has not yet faced restrictions but is “concerned about possible geopolitical disruption,” according to Reuters. The move comes as the Commerce Department restricts sales to certain Chinese technology companies (see 1911180036 and 1910070076) and prepares to release proposed restrictions on emerging and foundational technologies (see 1911200045).
The U.S. should expand export controls against China and study the country’s efforts to dominate emerging technology sectors, the U.S.-China Economic and Security Review Commission said. In its 2019 annual report, the USCC painted a somewhat grim picture for the prospects of U.S technology competition with China, saying China is committed to maintaining a dominant economic role in trade negotiations and is focused on outpacing the U.S. in the artificial intelligence sector -- a key area of concern for upcoming U.S. export control regimes. To combat this, the commission made several recommendations to Congress to safeguard U.S. technologies, improve foreign market access for U.S. exporters and pre-empt Chinese attempts to undercut U.S. companies and sanctions.
South Korea and Japan are still far apart in consultations over their trade dispute and don’t expect the U.S. to meditate negotiations, South Korea said.
A California resident was indicted for illegally exporting 11 packages of turtles to Hong Kong, the Justice Department said in an Oct. 23 press release. Keri Zhang Wang allegedly placed the box turtles and map turtles inside socks, which she placed inside shoe boxes “with packing materials.” She placed the shoebox “under bags of snacks and chips for shipping” and did not label the packages as containing turtles, the Justice Department said. The turtles are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, and Zhang Wang did not have the required permits to export them, the press release said. Zhang Wang was charged with four counts of smuggling goods and four counts of Lacey Act false labeling. She faces a maximum 10-year prison sentence and a $250,000 fine.
Japan said it allowed exports of hydrogen fluoride to South Korea in August, disputing what it called “incorrect” media reports that said Japan stopped all such the exports, according to a Sept. 27 press release from the Ministry of Economy, Trade and Industry. Japan said “certain amounts of controlled hydrogen fluoride” have been released for export to South Korea, and that it will grant export licenses for fluorinated polyimide, resists and hydrogen fluoride if the exports of those items of concern are “verified as legitimate civil transactions.” In July, Japan added restrictions on exports to South Korea of the three chemicals commonly used in smart chips and other high tech goods (see 1907010020).
Japan issued statements clarifying its position under its new export restrictions against South Korea, saying certain export conditions will be tightened but others will not be impacted. The measures, which took effect Aug. 28, place restrictions on chemicals -- and other goods -- used to make computer chips and other high-tech products (see 1908020023).
Japan said it will allow “legitimate” exports to South Korea as it prepares today to remove the country from its list of trusted trading partners. During an Aug. 27 press conference, Hiroshige Seko, Japan’s minister of trade, economy and industry, repeated assertions that the move is not a “countermeasure” to any South Korean actions and is not an export embargo.