March 28, 2023

Volume XIII, Number 87


March 27, 2023

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Chips Chatter: December 13 – December 19

Last Week: Commerce Added Chinese Companies to Entity List and Removed Some from Unverified List

  1. 36 companies were added to Entity List, 35 of which are in China. These companies will be restricted from purchasing technology from American companies without a license.

  2. 25 Chinese companies were removed from the “unverified list” after Chinese government cooperation to permit U.S. end use checks and determinations that firms were not using U.S. technology inappropriately.

Between the lines: Thea D. Rozman Kendler, Assistant Secretary of Commerce for Export Administration, said the new rules “further the Biden Administration’s efforts to deny the PRC access to advanced technologies for military modernization and human rights abuses.”In a December 8 press release, Alan Estevez, the Under Secretary of Commerce of Industry and Security, confirmed that the recent additions to the Entity List represent the US Department of Commerce’s Bureau of Industry and Security’s (BIS) focus on diversion.

US Argues That WTO Cannot Review Semiconductor Export Controls

  1. In response to China’s World Trade Organization (WTO) challenge over new U.S. export controls on semiconductors, the Biden Administration argued the WTO is an inappropriate forum to address national security related policies.

Why it matters: The WTO challenge is the first Chinese response to the new rules, but it will take years to yield any concrete retaliation in terms of tariffs or other trade restrictions, if ever.

What’s next: The U.S. has 60 days to enter into consultations with the Chinese government, after which China can request the WTO establish a panel to judge the dispute. However, the U.S. could negate any eventual ruling by appealing it to the Dispute Settlement Body (DSB), which remains inactive due to the United States’ block on new judges, over broader calls to reform the WTO. So, despite China’s challenge, the US aggressive export controls on semiconductors may be here to stay.

© Copyright 2023 Squire Patton Boggs (US) LLPNational Law Review, Volume XII, Number 356

About this Author

Pablo Carrillo Government Policies Attorney Squire Patton Boggs Law Firm
Of Counsel

Pablo E. Carrillo served as Chief of Staff to US Senator John McCain, Chair of the Senate Armed Services Committee and former US presidential candidate. He was responsible for the development and implementation of the Senator’s legislative and congressional oversight strategy.

Pablo also served as Minority General Counsel of the Senate Armed Services Committee, where he advised the Ranking Member and other Republican Senators on the defense authorization bill and the Minority’s oversight and investigative activities, as well as defense acquisition and contracting policy. He was the...

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Ludmilla Kasulke Trade Attorney Squire Patton Boggs Washington DC
Senior Associate

Ludmilla (Milla) Kasulke draws on her experience in both domestic and international policy to assist clients on trade matters. Milla provides multinational corporations, sovereign governments and entities, and quasi-government entities with advice on a wide range of trade policy, legal, and regulatory issues. She has been actively engaged in all aspects of the Section 232 process, including the exclusion petition process, and regularly advises clients on the impacts of current and potential new actions. Milla also regularly counsels clients on the impacts of current and potential new trade...

Camilo Daza Manga Public Policy Specialist
Public Policy Specialist

Camilo Daza Manga is a member of the firm’s Public Policy Practice, where he helps clients develop strategies to navigate the legislative process and achieve their goals, covering areas such as foreign affairs, trade, technology and education.

Prior to his role as a public policy specialist, Camilo participated in our highly competitive public policy internship program, where he monitored legislative and regulatory developments and analyzed legislation impacting the firm’s expansive network of global clients.