The Biden administration believes it has struck the right balance in managing technology trade with competitors such as China, White House National Security Adviser Jake Sullivan said Oct. 23.
Exports to China
New export controls over U.S. persons’ support for certain foreign military, intelligence and security services activities would place too much strain on both the government and industry compliance departments, disadvantage American exporters compared with their foreign competitors, and may provide no clear benefit to U.S. national security, companies and trade groups told the Bureau of Industry and Security.
With the United States and the EU both preparing to increase their scrutiny of outbound investment, the two parties should closely coordinate their efforts to achieve the best possible outcome, a Germany-based researcher said Oct. 22.
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The Treasury Department sent the final version of its outbound investment regulations for interagency review on Oct. 18, one of the final steps before the new rules are published. The regulations will set new prohibitions and notification requirements on U.S. investments in China, Hong Kong and Macau (see 2406210034, 2408050038, 2410170016 and 2410110036).
A Pentagon spokesperson declined to comment on a lawsuit filed this month by Chinese drone-maker DJI Technology Co., saying in an Oct. 22 email the agency “does not provide information or statements regarding any pending litigation matters.” DJI is challenging the Pentagon's designation of the firm as a Chinese military company (see 2410210038) following similar successful challenges by other firms based in China (see 105070015, 2105120047 and 2105240053).
Chinese drone-maker DJI Technology Co. is challenging the Pentagon's designation of the firm as a Chinese military company, saying the agency applied the "wrong legal standard," mixed up individuals "with common Chinese names" and relied on "stale alleged facts and attenuated connections that fall short of demonstrating" the company is connected to the Chinese military (SZ DJI Technology Co. v. U.S., D.D.C. # 24-02970).
China released new dual-use export control regulations Oct. 19, including details about its export licensing system, how Beijing will verify end-users of export-controlled items, how the rules may apply outside the country, and a method for adding restricted foreign importers, end-users and others who violate Chinese export controls to a new “control list.”
The Bureau of Industry and Security will add 26 companies and people to the Entity List after the agency said they violated U.S. export controls -- including by supplying sensitive items to China, Iran, Pakistan or Russia -- or failed to comply with U.S. end-use checks.
The Bureau of Industry and Security on Oct. 23 will add 26 companies and people to the Entity List for trying to buy controlled U.S. items for China’s military, evade sanctions against Russia, supply sensitive goods to Iran or Pakistan, or for evading U.S. end-use checks, the agency said in a final rule released Oct. 21. BIS will also remove two entities from the list and update the address information for another entity.