U.S. Army intelligence analyst Korbein Schultz pleaded guilty Aug. 13 to conspiring to "obtain and disclose national defense information," illicitly exporting data related to defense articles to China, and conspiring to illegally export defense articles and bribery, DOJ announced. He faces a maximum of 20 years in prison for each export-related charge.
Exports to China
China officially requested dispute consultations with the EU on its provisional countervailing duties on Chinese electric vehicles, the World Trade Organization announced Aug. 14. China said the duties and general CVD investigation violate Article VI of the General Agreement on Tariffs and Trade 1994, which covers antidumping and countervailing duties, and the Agreement on Subsidies and Countervailing Measures.
The Bureau of Industry and Security on Aug. 13 suspended the export privileges of four people, including one for illegal integrated circuit exports to China, another for illegal weapons brokering, and two others for illegally exporting weapons or ammunition.
The Defense Department will remove Hesai Technology, the largest Chinese lidar company by sales, from its list of Chinese companies that it said have ties to that country’s military (see 2402010018 and 2402090014), the Financial Times reported Aug. 13. The Pentagon made the decision to remove Hesai from the 1260H List after government lawyers expressed concerns about whether the listing would hold up in court, the report said. Hesai sued the agency over the listing in May. A Pentagon spokesperson didn’t respond to a request for comment.
The Biden administration is “reviewing closely” the requirements of new laws authorizing sanctions on Iranian oil and “will ensure the rigorous implementation of their provisions” as they take effect, a State Department official recently told a lawmaker.
A new set of export controls on U.S. persons activities and other transactions could require “dramatic expansions” to some companies’ internal compliance programs, Akin Gump said this month, including additional compliance training, end-user certifications and greater due diligence of suppliers and customers.
Lorand Laskai, former senior adviser to the undersecretary of the Bureau of Industry and Security, has joined the National Security Council as the new China director, he announced Aug. 11 on LinkedIn. Laskai has been at BIS since July 2023. An NSC spokesperson didn’t respond to a request seeking more information about his new role.
EU countries need to do more to track China’s progress in semiconductors, electric vehicles, solar panels and other technologies, European researchers said last week, warning that Beijing is increasingly turning to export controls to test where it can best “exploit dependencies” by other major economies that are imposing their own technology trade restrictions against China. They added that China’s export licensing decisions have so far been “highly opaque” and sometimes appear biased, generating fear among western countries that the controls are solely being used as a trade retaliation tool.
Although U.S. officials say export controls on advanced semiconductors and related equipment are designed to slow Chinese technological innovation, those controls have so far hurt American toolmakers the most, a technology policy expert said.
Mark Dallas, a Union College professor of political science, Asian studies and technology, has joined the Bureau of Industry and Security on temporary assignment as a senior adviser, he announced last week on LinkedIn. While on leave from his teaching job, Dallas said he will work on China export controls and provide “support” in the agency’s Office of Technology Evaluation on “cutting-edge technology R&D in US, China and Europe.” Dallas, who is also a China fellow with the Wilson Center, also will help with issues involving “emerging commercial technologies.”