2021-10-21 23:21:09 UTC
China has Joe by the short hairs.
"Billions Worth of American Tech Licenses Approved for
Blacklisted Chinese Companies"
"Suppliers to two blacklisted Chinese companies?telecom
giant Huawei and China?s top chipmaker SMIC?were
approved to receive billions of dollars worth of
licenses for U.S. technologies shipments between
November and April, documents released by the House
Committee on Foreign Affairs on Oct. 21 detail.
Some 301 licenses worth a total of $103 billion were
approved for suppliers to sell goods to Huawei and SMIC,
according to the documents prepared by the Commerce
Huawei and Semiconductor Manufacturing International
Corp (SMIC) were put on a U.S. trade blacklist, known as
the ?entity list,? in May 2019 and December 2020
respectively over national security concerns. Their
addition means that American companies seeking to sell
to them must apply for a license with the department.
Huawei equipment was also previously banned from use by
the federal government over security concerns. SMIC is
the largest manufacturer of semiconductor chips in
mainland China and is known to have ties to the Chinese
The committee voted Thursday to release the data, which
it received in May.
Rep. Michael McCaul (R-Texas), the ranking member of the
House Committee on Foreign Affairs, issued a prepared
statement saying that the bipartisan effort to release
the documents indicated the seriousness of the matter.
?In addition to sanctions and other tools to impose
consequences on bad actors, export controls are
fundamental in restricting the transfer of technology
and goods to our adversaries,? McCaul said.
McCaul said that such licenses, if materialized into
actual shipments, could end up being used by the Chinese
military, and suggested that American technologies could
be responsible for China?s reported test of a nuclear-
capable hypersonic weapon.
?This decision by the House Foreign Affairs Committee
reflects our bipartisan support for conducting oversight
over our export control system,? McCaul said. ?This data
provides concrete statistics to a public policy issue
that, until now, has been based solely on rhetoric and
?The recent reports regarding China?s hypersonic
program, that has likely been supported by U.S.
technology, is another frightening wake-up call for why
there must be more transparency and stricter enforcement
when it comes to export controls.?
Statements by the Commerce Department in the documents
indicated that the license applications involving Huawei
and SMIC were processed under licensing policies
developed by the Trump Administration and maintained by
the Biden Administration.
Further, the department wrote that the aggregate numbers
of licenses noted in the documents do not necessarily
reflect the real number of licenses that were utilized
for exports to the two companies.
This is because the documents do not include those
licenses that were earmarked for denial but had not yet
been denied, as well as the fact that approved licenses
do not correspond directly to actual shipments made.
The Commerce Department stated that, generally, about
half of such licenses are utilized, and warned that the
release of the data to the public would not improve
efforts to understand the effectiveness of U.S.-China
?The public release of aggregate licensing data for
certain PRC [People?s Republic of China] companies on
the Entity List, over an arbitrary snapshot in time,
risks politicizing the licensing process and
misrepresenting the national security determinations
made by the Departments of Commerce, Defense, Energy,
and State,? the statement said.
A majority of the licenses granted did not authorize
shipments of sensitive items. Of the 113 licenses
approved for Huawei during the period, 80 were for non-
sensitive items that only required a license because the
recipient was blacklisted. For SMIC, the figure was 121