U.S. takes further action against China

On 29th June 2020, the U.S. Department of State declared that it will end exports of U.S.-origin defense equipment and "will take steps" towards normalizing treatment of Hong Kong and China in regards to U.S. defense and dual-use technologies (affecting Export Administration Regulations (EAR) and the Commerce Control List (CCL)). The U.S. Department of Commerce added that the new security measures China has imposed on Hong Kong increase the risk of U.S. technology being diverted to the People’s Liberation Army or to the Ministry of State Security in China. Therefore, the Commerce Department regulations that give preferential treatment to Hong Kong over China are suspended, including the availability of “export licenses to Hong Kong, reexports to Hong Kong, and transfers (in-country) within Hong Kong of items subject to the EAR.” Follow this link for the Suspension of License Exceptions for Hong Kong from the Commerce Department.

Additionally, on 2nd July 2020, the U.S. House of Representatives passed the Hong Kong Autonomy Act, which was approved in the Senate on 25th June 2020. The bill authorizes sanctions on foreign individuals and entities “that materially contribute to China's failure to preserve Hong Kong's autonomy.”

Furthermore, on 1st July 2020, the U.S. Departments of State, Treasury, Commerce, and Homeland Security issued an advisory to businesses with “potential exposure” in their supply chain to the Xinjiang Uyghur Autonomous Region (Xinjiang) or facilities outside the region that use labor or goods from Xinjiang. The advisory warns of reputational, economic, and legal risks of involvement with entities engaged in human rights abuses in Xinjiang.

As always, the data reflecting these changes are available via PST.AG's data feed notification to our customers.