Today, the Bureau of Industry and Security (BIS) announced that it will create a new “Military End-User List” (MEU List) to help exporters comply with the recently expanded military end-use and end-user restrictions (MEU Rule) that apply to exports of certain items to China, Russia, and Venezuela. The current MEU List includes 102
China
U.S. Imposes Entity List Restrictions on Large Chinese Semiconductor, Shipbuilding, and Drone Companies
Today, the United States added 60 companies in China and 17 companies located elsewhere to the Commerce Department’s Entity List. Among the Chinese firms targeted are chipmaker Semiconductor Manufacturing International Corporation (SMIC) and ten semiconductor companies related to SMIC, shipbuilder China State Shipbuilding Corporation (CSSC), and drone manufacturer DJI. The move is the latest step…
Trump Administration to Address U.S. Reliance on Imports of Critical Minerals
Late yesterday evening, President Trump declared a national emergency concerning the United States reliance on imports of certain “critical minerals.” The Executive Order directs a number of federal agencies, to take certain actions in the coming weeks and months to address what the order describes as “undue reliance on critical minerals” imported from “foreign adversaries.”…
OFAC Extends Authorization for Wind Down and Divestment Activities Involving Xinjiang Production and Construction Corps (XPCC) Subsidiaries
Last week OFAC extended its general license authorizing U.S. persons to wind down and divest from certain transactions with subsidiaries of the Xinjiang Production and Construction Corps (XPCC) until November 30, 2020. OFAC extended the general license to give U.S. persons more time to exit dealings involving XPCC’s many subsidiaries, which play a significant role…
U.S. Government Bans TikTok and WeChat Downloads Beginning Sunday
Post Update:
Over the weekend, the WeChat and TikTok bans were temporarily suspended. On Saturday, the Commerce Department delayed implementation of the TikTok ban until September 28, 2020 after it was announced that Oracle would acquire TikTok’s U.S. operations. On Sunday, a federal court separately issued a preliminary injunction against the implementation of the WeChat…
U.S. Department of Defense Updates List of Companies Associated with the Chinese Military
On August 28, 2020, the U.S. Department of Defense (DOD) updated its list of “Communist Chinese military companies” that provide expertise and technological support to the Chinese military. The list, which includes a number of large state-owned enterprises in China, does not impose sanctions or export restrictions on the listed companies, although some of the…
Goodbye “Made in Hong Kong,” Hello “Made In China”
Updated August 24, 2020: CBP has extended the transition period for compliance with this rule change by 45 days until November 9, 2020. See the CSMS notice here.
Yesterday, U.S. Customs and Border Patrol (CBP) issued a new rule that requires importers to begin marking Hong Kong goods as “made in China” for…
OFAC announces first Hong Kong sanctions designations
On Friday, OFAC issued its first designations under the new Hong Kong sanctions program imposed by E.O. 13936.
OFAC added 11 current and former Hong Kong government officials, including Carrie Lam, Hong Kong’s Chief Executive, to its List of Specially Designated Nationals (SDN List). As a result, all property and interests in property of…
China and Hong Kong Developments: Sanctions, Export Controls, and Supply Chain Risks
Over the last month, the United States has taken a variety of steps to increase pressure on China in response to the imposition of China’s National Security Law in Hong Kong and alleged human rights abuses in Xinjiang. These measures include new sanctions programs targeting Hong Kong, export and trade control restrictions, and sanctions targeting actors in the Xinjiang region. The U.S. government also issued a lengthy Advisory warning U.S. and global companies of supply chain risks related to forced labor and other human rights issues in Xinjiang.
In this post, we highlight some key risks that companies should consider when doing business in the region against the backdrop of rising U.S.-China tensions.
Chinese Businesses and a Government Institute Now Subject to Export Restrictions
On May 22, 2020, the Department of Commerce’s Bureau of Industry and Security (BIS) announced the addition of the following businesses and a government institute to the agency’s Entity List in response to involvement in or support for human rights abuses related to the Xinjiang Uighur Autonomous Region (XUAR):
- China’s Ministry of Public Security’s Institute
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