US Strengthens Penalties on Russian and Chinese Companies Violating Export Restrictions Related to Security Threats

[Asia Economy Reporter Kim Hyunjung] The United States is strengthening penalties against companies that violate rules restricting the export of products that pose national security threats. Russia and China are expected to be included among the target countries.

On the 16th (local time), Bloomberg News reported this, citing remarks by Matthew Axelrod, Deputy Assistant Secretary for Export Enforcement at the Bureau of Industry and Security (BIS) under the U.S. Department of Commerce. The related strengthening measures are expected to include increased fines for violating companies and early disclosure of violation allegations.

The Biden administration has been maintaining export controls implemented by the previous administration to restrict advanced technology exports to China, its greatest geopolitical rival.

In a speech on the day, Deputy Assistant Secretary Axelrod explained, "These measures will be designed to protect the United States from threats posed by nationalist countries and to hold accountable those who do not comply with the rules."

BIS is particularly considering increasing the total amount of fines. In the 2020 fiscal year, BIS issued a total of 20 administrative orders, imposing fines in 19 of those cases. Among them, 8 cases involved fines under $100,000, 9 cases ranged from $100,000 to $1 million, and 2 cases exceeded $1 million. The company that received the largest fines from BIS was the Chinese network company ZTE, which was fined approximately $1.7 billion over 2017 and 2018.

This content was produced with the assistance of AI translation services.