On Saturday, China announced new rules banning Chinese firms and citizens from complying with “unjustified” foreign laws and sanctions. The order also allows Chinese firms to sue in.
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The United States continues to tighten controls on the People’s Republic of China. In this article we address three regulatory changes that highlight the need for enhanced due diligence when dealing with China: 1) restrictions on recent additions to the Entity List; 2) controls on military end-uses and military end-users; and 3) elimination of Hong Kong as a separate destination under the Export Administration Regulations (EAR).
Entity List
On December 22, 2020, the Bureau of Industry and Security (BIS) added 59 Chinese entities to the Entity List, thereby expanding the licensing requirements on export transactions with these entities. See Notice at 85 Fed. Reg. 83416. The additions to the Entity List are the result of the collective determination by the Departments of Commerce, State, Defense, Energy, and where appropriate, the Treasury (collectively, the “End-User Review Committee”) that these entities are engagi
By Alfred Chua2021-01-08T03:15:00+00:00
The Avic MA700 turboprop finds itself in an awkward situation after airframer Xian Aircraft showed up on the US government’s Military End User list. With progress on the aircraft at a glacial pace, could the move seal the MA700’s fate?
Avic is working to produce a 70-seat commercial turboprop known as the MA700
The MA700, built by Xian Aircraft, was touted to be a radically different model from its predecessors, such as the trouble-prone MA60. For one, it would be built using advanced manufacturing techniques and composite materials.
By 2014, a year after it formally launched the MA700 programme, Avic and Xian Aircraft began picking US suppliers.
Thursday, December 31, 2020
The United Kingdom (UK) approved its second COVID-19 vaccine this week, while the European Union (EU) moved forward quickly with distribution of its first-approved vaccine to its Member States. United States (US) President Donald Trump signed another COVID relief measure linked to an Omnibus appropriations bill late on Sunday, after objecting initially to a number of provisions and calling for additional congressional action, which has kept the US Congress in Washington this week.
On the eve of Christmas Day, the UK and EU secured a deal outlining terms for the two trading partners after Britain exits the Customs Union on 31 December. This week, the EU also secured a deal with the People’s Republic of China (“China” or “PRC”) that addresses investments. Meanwhile, the US Government unveiled its new Aluminum Import Monitoring and Analysis (AIM) system and released two reports – one focused on human trafficking in the seafood su
Dec.29.2020
BIS remains busy during the closing days of the year. On December 18 and 21 the Department of Commerce issued several press releases announcing the addition of 77 entities to the Entity List, and for the first time, a Military End User List. The December 18 press releases (here and here) announced the addition of 77 entities to the Entity List, including several high-profile Chinese companies. And while the new additions were not published in the Federal Register until December 22, the additions became effective on the date of the press release, December 18. Continuing a “rulemaking by press release,” exporters who rely on the Federal Register may have missed the additions. The December 21 press release (here) publicized the creation of a new list, the Military End User List (“MEU List”), related to the MEU rule BIS issued earlier this year (see our prior alert here). The MEU List was published in the Federal Register and went into effect on Decembe