On July 14, 2020, President Donald Trump signed an executive order that ends preferential treatment for Hong Kong under provisions of the Export Control Reform Act and the Arms Export Control Act. This executive order also expands export restrictions, revoking all license exceptions for exports to Hong Kong for items subject to the Export Administration Regulations (EAR), which provide “differential treatment compared to those license exceptions.”
The executive order also outlines sanctions, including the freezing of assets for people with an involvement in actions that “undermine” Hong Kong’s democracy, threaten its autonomy, or freedom of expression. In addition, Trump has signed the Hong Kong Autonomy Act, which authorizes sanctions against Chinese officials and foreign banks that have an involvement with the passage of Hong Kong’s national security law. The U.S. Department of State Directorate of Defense Trade Controls has issued guidance to provide clarification on the restrictions.
Additionally, the Department of Commerce’s Bureau of Industry and Security (BIS) has added 11 Chinese companies that are implicated in human rights violations targeted at Muslim minority groups from the Xinjiang Uyghur Autonomous Region (XUAR) to the Entity List. This will result in these companies facing restrictions on access to U.S.-origin items, including commodities and technology.
The companies added to the Entity List include:
- Changji Esquel Textile Co. Ltd.
- Hefei Bitland Information Technology Co. Ltd.
- Hefei Meiling Co. Ltd.
- Hetian Haolin Hair Accessories Co. Ltd.
- Hetian Taida Apparel Co., Ltd.
- KTK Group
- Nanjing Synergy Textiles Co. Ltd.
- Nanchang O-Film Tech
- Tanyuan Technology Co. Ltd.
- Xinjiang Silk Road BGI
- Beijing Liuhe BGI
For further questions or assistance, please contact Mohawk Global Trade Advisors.