‘Not True’ That State Dept. Delayed China Sanctions, Huawei Controls, Official Says

A State Department official this week denied allegations that the agency has held back sanctions and export controls in an effort to limit damage to the U.S.-China relationship, saying the Biden administration continues to enforce a range of human rights-related trade restrictions against Beijing. But the official also said the administration hasn’t yet imposed mandatory sanctions under the Uyghur Human Rights Policy Act of 2020 and was accused by at least one lawmaker of failing to comply with a congressional subpoena that sought information on sanctions against China.

Rep. Michael McCaul, R-Texas, who subpoenaed the State Department earlier this month for certain documents relating to the agency’s reported “obstruction of the use of national security tools” against China (see 2307120042), said the agency didn’t respond in time to the subpoena. Speaking during a House Foreign Affairs subcommittee hearing, McCaul said he received an “insufficient” answer from the State Department after the July 17 deadline.

“Your department is in violation today of a congressional subpoena,” McCaul told Assistant Secretary of East Asian and Pacific Affairs Daniel Kritenbrink, who was testifying before the subcommittee. “This is unacceptable, and I will have to prepare for further action.”

Kritenbrink told McCaul, chair of the Foreign Affairs Committee, that the State Department is “committed to responding to your committee's requests in a timely manner,” but said the agency is “balancing a growing number of congressional inquiries and evolving priorities.” He also said he was restricted in providing information on any matters that may preview upcoming sanctions against China.

Several lawmakers said the State Department needs to be more transparent. Rep. Andy Barr, R-Ky., said media reports show the agency is “intervening with other agencies to delay implementation of sanctions and export controls,” but Kritenbrink said those reports are false.

“It's absolutely not true that we are pulling our punches in any way,” he said, adding that the U.S. has “taken an unprecedented number of steps” against China. “We've sanctioned four [People’s Republic of China] officials under Treasury sanctions, 31 entities under the Uyghur Forced Labor Prevention Act, another 26 entities under the Commerce Bureau of Industry and Security list,” Kritenbrink said, referring to the Entity List. “We are absolutely enforcing” sanctions.

But Kritenbrink acknowledged, under questioning from multiple lawmakers, that the State Department hasn’t yet complied with the Uyghur Human Rights Policy Act, which requires the administration to sanction any foreign person, including Chinese officials, that have been involved in the torture, “degrading treatment or punishment,” “prolonged detention without charges and trial” or other similar actions against Muslim minority groups in Xinjiang. “I don't believe that we have taken steps specifically under that act,” Kritenbrink said.

Other lawmakers questioned whether the State Department -- as part of its role on an interagency committee that makes decisions on export license applications -- pushed back against a decision to increase export licensing requirements for Huawei. McCaul said he was told last year by “multiple Commerce officials” that an “update to the Huawei export control licensing policy was done,” which reportedly was to include a ban on a broader set of technology shipments to the Chinese telecommunications company (see 2301310009).

“Seven months later, the rule is yet to be released,” McCaul said. He said he thought BIS Undersecretary Alan Estevez “did a pretty good job earlier on” in his tenure, but “we haven't seen anything in the timeframe that this sort of charm offensive is taking place with respect to Beijing.” A senior BIS official told Congress earlier this month that the agency didn’t have a draft rule in place to increase export controls against Huawei despite rumors that new restrictions for the Chinese technology company were imminent (see 2306010038).

Kritenbrink said the State Department hasn’t done anything to delay new export controls against Huawei. “We are committed, as we've demonstrated through steps we have taken in the technology space -- including, I think most significantly, the Oct. 7 advanced computing rule -- that we are committed to defending our national interests,” he said, referring to the BIS China-related chip controls released in October (see 2210070049). “We are committed to preventing advanced U.S. technologies from falling into the hands of the Chinese.”

Other lawmakers criticized the State Department for failing to sanction China for providing lethal assistance to Russia. Kritenbrink disagreed with their premise, saying the administration has sanctioned Chinese companies for aiding Russian firms, but so far Beijing has “not provided lethal assistance to the Russian military.”

“You're wrong about that,” said Barr, who pointed to media reports that suggest China is supporting the Russian military. “There are customs records,” Barr said, adding that media outlets have done a “better job of uncovering material lethal assistance than the State Department.”