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OFAC issues General License 1A concerning restrictions on Communist Chinese Military Companies and related FAQs

By , and 3 Mins Read

On January 27, 2021, the US Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License 1A, “Authorizing Transactions Involving Securities of Certain Communist Chinese Military Companies,” (“GL 1A”) in relation to OFAC’s Communist Chinese Military Companies (“CCMCs”) sanctions program as implemented pursuant to Executive Order 13959 (“EO 13959”) and amended by Executive Order 13974. OFAC concurrently published frequently asked questions (FAQs) 878 and 879, which clarify OFAC’s previous guidance on subsidiary entities with names that “closely match”…

Ukraine imposes a new set of personal sanctions

By 3 Mins Read

Between 28 January and 2 February 2021, the president of Ukraine enacted three decisions of the National Security and Defense Council of Ukraine: Presidential Decree No. 29/2021 dated 28 January 2021 “On the Decision of the National Security and Defense Council of Ukraine dated 28 January 2021 “On Amending the Decision of the National Security and Defense Council of Ukraine dated 14 December 2020 enacted by Presidential Decree No. 564-27т dated 14 December 2020,”” effective from…

US – OFAC issues Hong Kong Sanctions Regulations

By 1 Min Read

On January 15, 2021, the Office of Foreign Assets Control (OFAC) published in the Federal Register a final rule adding regulations (31 C.F.R. Part 585) to implement Executive Order (E.O.) 13936 of July 14, 2020. OFAC intends to supplement these regulations with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance, general licenses, and statements of licensing policy. In E.O. 13936, the President determined that, pursuant to section 202 of…

US – Commerce publishes interim final rule on Securing the Information and Communications Technology and Services Supply Chain; Comments due March 22, 2021

By , and 6 Mins Read

On January 19, 2021, the Commerce Department published an interim final rule to implement President Trump’s 2019 Executive Order 13873 on “Securing the Information and Communications Technology and Services Supply Chain” (“Interim Rule”). The Interim Rule was issued following the closure of the public comment period on January 10, 2021 on the proposed rules issued on November 27, 2019 (“Proposed Rules”) to implement Executive Order 13873. For more information on Executive Order 13873 and the Proposed Rules, please see our blog…

US – DOE issues Prohibition Order Securing Critical Defense Facilities

By , , and 2 Mins Read

On December 17, 2020, the US Department of Energy (DOE) issued a “Prohibition Order Securing Critical Defense Facilities“ (the “Prohibition Order”) pursuant to authority granted to the Secretary of Energy by Executive Order 13920 (the “BPS EO“). As of January 16, 2021, the Prohibition Order prohibits certain electric utilities that serve certain defense facilities from acquiring, importing, transferring, or installing identified bulk-power system (“BPS”) equipment and related software produced or supplied by entities subject to…

US enacts NDAA 2021 with additional sanctions against Turkey, Russia, and China

By , and 6 Mins Read

On January 1, 2021, the National Defense Authorization Act for Fiscal Year 2021 (the “NDAA 2021”) was enacted into law after the US Congress voted to override the President’s veto of the bill. The defense budget legislation authorizes $740.5 billion for national defense spending and sets policies on military compensation, procurement of equipment, operations, and training. In addition, similar to most National Defense Authorization Acts in recent years, the NDAA 2021 includes provisions regarding sanctions and export…

US – Trump Administration creates framework to target Chinese connected software applications

By , and 2 Mins Read

On January 5, 2021, President Trump issued Executive Order 13971 “Addressing the Threat Posed By Applications and Other Software Developed or Controlled By Chinese Companies” (“EO 13971”), which targets certain Chinese connected software applications. Specifically, EO 13971 prohibits transactions by any person, or with respect to any property, subject to the jurisdiction of the United States, with persons that develop or control the following Chinese connected software applications, or with their subsidiaries: Alipay, CamScanner, QQ Wallet, SHAREit,…

UK Government announces new measures over alleged Xinjiang human rights concerns

By 2 Mins Read

On 12 January 2021, UK Foreign Secretary Dominic Raab announced new measures to ensure that UK companies are neither complicit in, nor profit from, alleged human rights violations in Xinjiang, China. See press release here. Under the new measures, the UK will review export controls in order to prevent exports of goods potentially contributing, either directly or indirectly, to alleged human rights abuses in Xinjiang. This review will determine specific items that will become subject to…

US – USTR amends product exclusion and product exclusion extension for a certain article from China in Tranche 3 ($200 Bn action)

By 2 Mins Read

On January 15, 2021, the Office of the US Trade Representative (USTR) published in the Federal Register a notice that announces the U.S. Trade USTR’s determination to make a technical amendment to a previously granted exclusion and the extension to that exclusion. The product exclusion amendment announced in annex A of the notice will apply from September 24, 2018 to August 7, 2020. The product exclusion extension amendment announced in annex B of the notice…

US – Government procurement: DoD amends DFARS re: Covered Defense Telecommunications Equipment or Services

By 1 Min Read

On January 15, 2021, the Department of Defense (DoD) published in the Federal Register a final rule [Docket DARS–2019–0063] adopting as final, with changes, an interim rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Acts for Fiscal Years 2018 and 2019 related to the procurement of covered telecommunications equipment or services. Specifically, the rule prohibits the use of telecommunications equipment or services from certain Chinese entities…