Japan, which suffered economic coercion from China earlier than any other country, is largely on the same page as the U.S. when it comes to supply chain resilience and restrictions on exports, but the two diverge in their attitudes about China's role in the global economy.
Exports to China
The two authors of a bipartisan bill to boost U.S. technology competitiveness were lukewarm this week about the prospect of allocating more export control resources to the Commerce Department and stopped short of promising it more money, with one calling on the agency to be more efficient with what it has. And while they said they support Commerce’s updated China-related semiconductor export controls, they also said the U.S. should devote as much attention to expanding trade with close allies as it does to restricting trade with adversaries.
Electronics distribution company Broad Tech System and its president and owner, Tao Jiang of Riverside, California, pleaded guilty Jan. 11 to participating in a conspiracy to illegally ship chemicals made or distributed by a Rhode Island-based company to a Chinese firm with ties to the Chinese military, the U.S. Attorney's Office for the District of Rhode Island announced. Jiang and Broad Tech admitted to violating the Export Control Act and conspiring to commit money laundering.
Behrouz Mokhtari of McLean, Virginia, and Tehran pleaded guilty Jan. 9 to two conspiracies to violate U.S. sanctions on Iran "by engaging in business activities on behalf of Iranian entities" without getting a license from the Treasury Department's Office of Foreign Assets Control, DOJ announced Jan. 9. Mokhtari will forfeit money, property and assets obtained from the schemes, including a Campbell, California, home, and a money judgment of over $2.8 million, DOJ said. The defendant faces a maximum of five years in prison for each of the two conspiracy counts.
The U.S. likely will face challenges trying to place export controls on RISC-V, an open-source semiconductor architecture that policymakers fear China may use to evade export restrictions and leapfrog their U.S. competitors, Georgetown’s Center for Security and Emerging Technology said this week.
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A 2022 Bureau of Industry and Security policy change has continued to lead to improved Chinese cooperation with BIS end-use checks, an agency official said Jan. 23.
The Bureau of Industry and Security last week removed three companies from the Unverified List after it was able to successfully complete end-use checks.
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The U.S. is likely to continue using export controls, investment restrictions and other economic policy tools against China this year, particularly as the upcoming presidential election draws closer, trade and economic policy experts said this week.