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ARTICLE · 21 OCTOBER 2022

BIS Implements Sweeping New Export Controls Targeting China

Herbert Smith Freehills Kramer LLP
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The New Rules impose a complex set of novel controls while leaving certain key terms and concepts undefined.

United StatesInternational Law
Jonathan Cross
Jonathan Cross
Christopher Boyd
Christopher Boyd
Brittany Crosby-Banyai
Brittany Crosby-Banyai
Kelechi Okengwu
Kelechi Okengwu

On October 7, 2022, the Department of Commerce's Bureau of Industry and Security ("BIS") took two significant actions with major implications for companies and persons dealing with the Chinese semiconductor and electronics sectors:

  • BIS issued an interim final rule (the "IFR") targeting exports to the People's Republic of China that, among other things, imposes sweeping new controls on advanced computing integrated circuits ("ICs"), commodities that contain ICs, and certain items related to the manufacture of semiconductors; tightens end-use restrictions for semiconductor manufacturing by adding "Regional Stability" controls for China; expands the so-called Foreign-Produced Direct Product Rule (the "FDP Rule"); and introduces sui generis restrictions on US person "support" for semiconductor manufacturing.

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