McCaul: Tighten Export Controls on China

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The two lawmakers sent a letter Friday to Commerce Undersecretary for Industry and Security

Alan Estevez underscoring the need to ensure full implementation of US export control laws on China given its ongoing trade ties to designated State Sponsors of Terrorism.

In the letter, the lawmakers expressed deep concern over reports that Beijing is transferring US-origin technology to SSTs, particularly Iran, in violation of US export laws.

“We are concerned the PRC’s economic and trade ties with SSTs are undermining US national security and foreign policy interests,” the lawmakers wrote.

They noted that between 2010 and 2016, ZTE illegally exported tens of millions of dollars worth of US-origin equipment – including controlled dual-use goods on the Commodity Control List – to Iran in violation of US sanctions and export control laws, which was a contributing factor to the entity listing of Huawei and ZTE.

“Further, recent open-source reporting suggests the PRC is supplying Iran with counterfeit copies of Western-origin commodities, which are used to produce combat drones such as those being transferred to Russia for use in its illegal war of aggression in Ukraine,” they wrote.

Questions for BIS

The lawmakers requested answers by March to the following questions:

  • Describe in detail how BIS, in coordination with other agencies, monitors and enforces the PRC’s compliance with de minimis, foreign direct product rules, and other enhanced controls on SSTs.
  • How many violations of U.S. export controls involving the PRC, or affiliated persons or entities, have occurred since 2016, and how many of these cases were referred to the Department of Justice?
  • Has BIS applied targeted enforcement actions against specific violators, and if so, which ones and were the violators state or private-owned?
  • How have the PRC’s anti-sanctions laws and blocking measures factored into BIS determinations regarding violations of U.S. export laws and regulations?
  • From January 1, 2021 through December 31, 2021 how many pre-license or end-use checks did BIS conduct in the PRC to confirm compliance with de minimis, foreign direct product rules, and other enhanced controls on SSTs? How many checks did BIS request during this timeframe? Of the checks BIS requested during this timeframe, how many have been concluded?

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