The Office of Information and Regulatory Affairs began a review of a final Bureau of Industry and Security rule that would change the license review policy for exports of certain drones. The rule, received by OIRA Nov. 20, would change the review policy for exports of unmanned aerial systems to reflect the U.S. July decision to loosen restrictions over those exports (see 2007270035).
The Office of Information and Regulatory Affairs on Nov. 19 concluded a review of a State Department rule that would amend International Traffic in Arms Regulations requirements for certain countries. The final rule would modify the ITAR for Tunisia, Eritrea, Somalia, the Democratic Republic of the Congo, Liberia, Cote d'Ivoire, Sri Lanka and Vietnam, as well as “other changes.” OIRA received the rule Oct. 28 (see 2010300007). The agency mentioned the rule in past regulatory agendas (see 2007200005 and 1911250035).
A new State Department paper warning of China and its global trade ambitions “only serves to lay bare the entrenched Cold War mindset and ideological prejudice of some people on the U.S. side and their fear, anxiety and unhealthy mentality towards a growing China,” a Chinese Foreign Affairs Ministry spokesperson said, according to a press conference transcript. “Their vile attempts to bring back the Cold War will be mercilessly rejected by the Chinese people and all peace-lovers around the world,” he said. The Chinese Communist Party “aims not merely at preeminence within the established world order,” but to “fundamentally revise world order,” with China at the center and serving “Beijing’s authoritarian goals and hegemonic ambitions,” according to the Policy Planning staff paper, “The Elements of the China Challenge.” It proposes a “tasks” list to “refashion” U.S. policy by educating Americans “about the scope and implications” of the alleged threat and training a “new generation of public servants” fluent in Chinese. The U.S. also “must promote American interests by looking for opportunities to cooperate with Beijing subject to norms of fairness and reciprocity,” it says. The State Department didn’t respond to questions Nov. 19.
The Office of Information and Regulatory Affairs began a review of a final rule from the Bureau of Industry and Security that would clarify the scope of certain export restrictions to reflect decisions made at the June 2019 Australia Group plenary meeting. The rule would amend the scope of Export Control Classification Number 1C991, which covers vaccines, immunotoxins, medical products, and diagnostic and food testing kits. OIRA received the rule Nov. 16.
President Donald Trump announced his intention to appoint six people to the President’s Export Council, the White House said Nov. 17. They are: Richard Rigdon of Florida, Barron Hetherington and Robert S. Carl Jr. of Pennsylvania, Deborah Maestas of New Mexico, Michael Stumo of Massachusetts, and Roddey Dowd Jr. of North Carolina. The council has not met in several years.
The Department of Justice on Nov. 16 released a “year-in-review” synopsis of its China Initiative, detailing the agency’s emphasis on investigating Chinese theft of U.S. technology and trade secrets. The agency said it charged three cases of Chinese economic espionage that were intended to benefit the Chinese government, and it focused on raising awareness among U.S. academic institutions. Universities are among the nation's “most vulnerable sectors” to Chinese trade theft because of the importance of the free flow of ideas, the agency said. DOJ also said it plans to increase outreach in the coming year to help U.S. businesses and academia “better protect themselves.” The initiative was established in November 2018.
The State Department approved three potential military sales to the United Arab Emirates worth about $23.4 billion, the Defense Security Cooperation Agency said Nov. 10. Under the first sale, the UAE would get MQ-9B Remotely Piloted Aircraft and related equipment worth nearly $3 billion. The principal contractors will be General Atomic Aeronautical Systems, Lockheed Martin, Raytheon, L3Harris and Leonardo SpA. The second sale includes F-35 Joint Strike Fighters and related equipment worth about $10.4 billion. The prime contractors will be Lockheed Martin and Pratt & Whitney Military Engines. The third sale includes missiles, bombs and other munitions worth about $10 billion. Raytheon and Northrop Grumman Information Systems will be the principal contractors.
President Donald Trump issued an executive order Nov. 12 that will block Americans from transacting in “publicly traded securities” or investing in Chinese firms that have ties to the Chinese military when it takes effect Jan. 11, 2021. The EO bans investments in a range of Chinese companies included in lists published by the Defense Department earlier this year, including Huawei, Hikvision and other prominent Chinese technology companies (see 2008300001 and 2006250024). U.S. people or companies violating the order could be subject to restrictions or sanctions under the International Emergency Economic Powers Act, said the EO, which will be imposed by the Treasury Department after consultation with other agencies. The White House said agencies may soon issue “rules and regulations” to implement the order, including procedures for license applications.
The Bureau of Industry and Security withdrew a proposed rule from the Office of Information and Regulatory Affairs related to its strategic trade authorization (STA) license exception. The rule, which was received by OIRA Aug. 27 (see 2008280022) and withdrawn Nov. 12, would have clarified the “availability” and expanded restrictions on availability of the license exception under the Export Administration Regulations. A BIS spokesperson said the agency is still considering proposing the rule. “The rule was withdrawn for further informal interagency consultation,” the spokesperson said.
The Office of Information and Regulatory Affairs began a review of a final rule from the Bureau of Industry and Security to remove Hong Kong as a “separate destination” under the Export Administration Regulations. OIRA received the rule Nov. 6. BIS announced in June that it suspended license applications for shipments to Hong Kong (see 2006300050) to further align Hong Kong export regulations with mainland China.