Daily Management Review

US Had Given Out 192 Export Licenses To Chinese Firms That Were On A Blacklist At The Beginning Of 2022


US Had Given Out 192 Export Licenses To Chinese Firms That Were On A Blacklist At The Beginning Of 2022
According to a report released by a U.S. congressional committee on Friday, the Biden administration authorized 192 licenses totaling more than $23 billion to export American goods and technology to Chinese firms on a U.S. trade blacklist in the first quarter of last year.
A chart displayed the 192 licenses that were issued out of the 242 license applications decided between January and March 2022, and 115 of those licenses approved contained controlled technology. Nineteen applications, or 8% of the total, were rejected, and 31 were returned unanswered.
The chairman of the U.S. House of Representatives Foreign Affairs Committee, Republican Representative Michael McCaul, disclosed at a hearing on Tuesday that more than $23 billion in licenses were approved for suppliers to businesses on the "entity list" of the U.S. Department of Commerce in the first quarter of 2022. He then released the license numbers on Friday.
McCaul deemed the approvals unacceptable in a statement on Friday. He claimed that the Chinese Communist Party was using crucial American technology for its military and surveillance operations.
The Bureau of Industry and Security (BIS) of the Commerce Department "must and can do more."
The choices were defended by the Commerce Department.
"Every license reflected in this data -- which primarily involve exports of low-technology ...and other items that do not pose significant national security concerns ... was carefully reviewed," the agency said in a statement, explaining that the decisions are made by the Departments of Commerce, Defense, State, and Energy.
BIS also pointed out that certain well-known Chinese companies' licenses are reviewed in accordance with rules established by the Trump administration without presumptions of denial.
It also noted that licenses are typically valid for four years and that a significant number are not fully utilized. Exporters typically submit license applications that have a higher likelihood of approval.
According to information first obtained by Reuters and made public by McCaul in October 2021, suppliers to China's Huawei received 113 licenses worth $61 billion between November 2020 and April 2021, and 188 additional licenses worth nearly $42 billion were approved for Semiconductor Manufacturing International Corp (SMIC).
The House Foreign Affairs Committee approved the release of the most recent data this week, but at the hearing on Tuesday on countering Chinese aggression, McCaul only provided the $23 billion figure and not the specifics on the number of licenses.