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.
The U.S., the U.K. and Canada last week issued new, coordinated sanctions against Belarus, targeting people, companies and entities that are helping Russia evade sanctions and export controls, funding Belarusian oligarchs tied to President Alexander Lukashenko or taking other steps to aid the Russian or Belarusian governments. The sanctions, which were announced days after a similar set of designations imposed by the EU (see 2408050008), were meant to mark the four-year anniversary of the “fraudulent” 2020 presidential election that helped Lukashenko keep power, the countries said in a joint statement.
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.
The Biden administration has targeted financial networks that support Hezbollah by conducting five rounds of sanctions against 21 people since October 2023, a State Department spokesperson said Aug. 8.
The Treasury Department’s Financial Crimes Enforcement Network announced it’s running nationwide television and radio public service announcements to help inform small and medium-sized businesses about upcoming requirements to report certain beneficial ownership information to the agency. The announcement comes after lawmakers criticized FinCEN for not doing enough to inform American companies about the new rules (see 2402140044 and 2407090053), which will require businesses to submit information on who owns and controls them as part of a government-led effort to prevent sanctioned parties and other criminal actors from hiding money or property in the U.S. (see 2312210017).
Russian companies have bought millions of dollars worth of drone parts from China-based drone accessories supplier Tarot-RC, risk advisory firm Kharon said Aug. 6. Kharon said the parts were made by Chinese company Wenzhou Feiyue Aviation Technology Co. and have been shipped into Russia in “significant quantities” since the start of 2023 despite claims by Tarot-RC “that it does not engage in such activity.” Trade records and other public data “contradict that assertion, pointing to a consistent influx of Tarot-RC components into Russia, both through direct shipments from Wenzhou Feiyue Aviation Technology Co. and through intermediaries that move products from China and Hong Kong into Russia,” Kharon said.
Lithuania's customs authority fined an unnamed Lithuania-registered export company over $14.8 million for violating EU sanctions, according to an unofficial translation. The company exported vehicles to Russia through Kazakhstan, Belarus and Turkey, and “did not ensure compliance with the restrictions and obligations set by the international sanctions implemented in the Republic of Lithuania,” the customs agency said, adding that it detained and seized six “tractor semi-trailers.” It also said this “is not the first time that such sanctions have been applied to companies for violations of the law on international sanctions,” but didn’t provide more details.
The U.S. Navy is trying to help commercial cargo ships maintain the alternative trade routes companies have found as the U.S. works to end Houthi attacks on ships transiting the Gulf of Aden and the Red Sea, Vice Admiral George Wikoff said. And although the U.S. has used sanctions to target several Iran-backed networks helping to supply the Houthis, he said the U.S.-designated terror group is increasingly diversifying its suppliers and is becoming a legitimate technology exporter.
The State Department's Directorate of Defense Trade Controls this week announced its roster of members for the 2024-2026 term of the Defense Trade Advisory Group. The DTAG, which offers recommendations to DDTC about defense export control issues, recently suggested improvements to the government's foreign military sales program (see 2310130032).
The U.K. recently updated its export control guidance for academic research, adding new language to clarify how controls apply to research meant for publication or that benefit from “public domain exemptions.” The guidance specifies that research isn’t considered in the public domain until it’s “published and accessible to the public,” so sending “controlled” research overseas for peer review would require a license. “Once published the requirement of the licence will lapse as it is now in the public domain,” the U.K. said.