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The Biden administration continues to utilize United States trade sanctions and export controls as a key tool in its efforts to put pressure on China, Myanmar/Burma and Russia. Since our last update, actions by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), the U.S. Commerce Department’s Bureau of Industry and Security (BIS), the U.S. State Department (State) and the U.S. State Department’s Directorate of Defense Trade Controls (DDTC) have been bolstered by similar actions taken by U.S. allies, indicating multilateral support for the Biden administration’s efforts to combat ongoing human rights crises and national security concerns in these regions.
Sunway Microelectronics; and
Tianjin Phytium Information Technology.
Because of these designations, exports and transfers of most items with significant U.S. content to these Chinese firms will now require a BIS export license under the U.S. Export Administration Regulations (“EAR”). In its April 8 announcement, BIS also said that it will consider any export license applications for these entities with a presumption of denial.
According to the BIS announcement, the seven listed firms supply China’s military with technology that can be used in the development of weapons of mass destruction and hypersonic weapons. The Biden Administration believes that some of that work may depend on the use of advanced semiconductors designed or made with U.S. origin software or other technology. However, much of that semiconductor fabrication takes place at a leading third country semiconductor foundry. The effectiveness of these new Entity List sanctions will then largely depend on
US Blacklists Seven Chinese Supercomputer Organisations
The US Department of Commerce’s Bureau of Industry and Security (BIS) has added seven Chinese supercomputing organisations to the Entity List which bars them from conducting activities with US companies without first obtaining a US government license.
These are organisations considered to be contrary to the national security or foreign policy interests of the United States.
The companies added to the list are involved either with building supercomputers used by China’s military actors, its military modernisation efforts or weapons of mass destruction.
US officials have long complained that Chinese companies are under the direction of the People’s Republic of China and collect sensitive information on behalf of the People’s Liberation Army. It is the first move by the Biden administration to make it harder for China to obtain US technology. “Supercomputing capabilities are vital for the development of
The latest penalties block access to U.S. technology for researchers and manufacturers the Commerce Department said build supercomputers used by the Chinese military in weapons development.