The Defense Department is proposing a regulatory revision that would require certain contractors to provide their export authorizations to the Defense Contract Management Agency. The change would revise the Defense Federal Acquisition Regulation Supplement to require contractors to provide the agency with export license exemptions, export license exceptions, export licenses or other approvals when the contract “requires government quality assurance surveillance oversight and has delivery to, or production or performance in, government quality assurance countries,” the rule said. Comments are due May 22.
The U.S should build a new international technology task force to increase technology trade cooperation with allies, the German Marshall Fund said in a report this week. The report, authored by GMF technology policy experts Karen Kornbluh and Julia Trehu, said the task force could focus on semiconductors, green technologies and critical minerals, and would allow members to share supply chain data and “provide a venue for countries to reconcile export controls.”
The U.S. is planning more export restrictions on semiconductor manufacturing items destined to China and could publish them as early as next month, Bloomberg reported March 10. The new restrictions could “double the number of machines” that require export licenses, the report said, placing new controls on Applied Materials and other chip equipment makers. The Biden administration plans to coordinate the new restrictions with the Netherlands and Japan, but “doesn’t plan to water down its plans if those other nations adopt weaker guidelines,” the report said.
The U.S. and India last week launched the India-U.S. Strategic Trade Dialogue to discuss “export controls, explore ways of enhancing high technology commerce, and facilitate technology transfer between countries,” the Commerce Department said. The effort will be led on the U.S. side by the Bureau of Industry and Security, Secretary Gina Raimondo said. “This is exciting because it’s an official government-to-government arrangement where we’re going to deepen our engagement with India, specifically around the area of aligning our export controls and sharing our information with one another.”
Shipments of export-controlled technologies from the U.S. and its allies to Russia have dropped nearly 50% by value since Russia’s invasion of Ukraine last year, said Thea Kendler, the Bureau of Industry and Security’s assistant secretary for export administration. Kendler, speaking during a conference last week hosted by the Association of Women in International Trade, touted the impact of export restrictions imposed by Japan, the U.K., South Korea and other nations she said are part of the Global Export Control Coalition (GECC), adding that the controls have led to the “severe deterioration” of Russia’s ability to sustain its military.
Officials from South Korea, Japan and the Biden administration met in Hawaii, the White House said Feb. 28, and talked about how to increase supply chain resilience "in semiconductors, batteries, and critical minerals." The officials also talked about how to coordinate on measures to protect sensitive technologies, the readout said.
The State Department’s Directorate of Defense Trade Controls this week finalized its first reorganization rule for its defense trade regulations (see 2203220013), addressing some commenters’ concerns and recommendations. But DDTC didn’t make many substantial changes in the final rule, which takes effect Feb. 27, saying it would consider some revisions in future rulemakings and stressing that this rule was “focused on movement and consolidation” of the International Traffic in Arms Regulations.
The proposed Chip 4 Alliance of the U.S., Japan, South Korea and Taiwan (see 2212280035 and 2210050009) likely will not be enough to keep U.S. semiconductor technology ahead of China, one lawmaker and several experts said during a Feb. 22 event hosted by the Atlantic Council. For the U.S. to achieve true multilateral chip cooperation, including with the EU, experts said, the U.S. may have to settle for watered-down restrictions.
Top Chinese academics believe the country should “amass a portfolio of patents that govern the next generation of chipmaking” to allow the country to counter U.S. semiconductor export controls, according to a Feb. 20 Bloomberg report. The report cites a bulletin recently published by the Chinese Academy of Sciences, the country’s “most influential scientific body,” which could represent China’s plan to evade U.S. export restrictions and demonstrate how it “could win a crucial technological conflict with Washington,” the report said.
The Bureau of Industry and Security will expedite export license applications for items related to humanitarian and earthquake relief efforts in Turkey and Syria, BIS announced Feb. 17. Although most aid-related items don’t require a license under the Export Administration Regulations, BIS said it will fast-track any items that do, including heavy equipment, telecommunications hardware and software, portable generators, medical devices, water purification equipment, sanitation equipment and shelter materials.