As the final regulations for the Foreign Investment Risk Review Modernization Act take effect this week, FIRRMA’s definition for critical technologies remains unclear due to a lack of proposed rules by the Commerce Department on emerging and foundational technologies, trade lawyers said.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
USCBC Members in 'Crisis Mode', China Pushing for Normalized Trade as Coronavirus Outbreak Continues
U.S.-China Business Council members are in “crisis mode” as China continues to battle the coronavirus outbreak, which has caused disruptions in supply chains and hurt earnings, a USCBC spokesman said. While it is too early to predict how much of a sustained impact the virus will have on global trade, the USCBC is confident trade and business with China will normalize. “Everyone I’ve spoken with fully expects life to return to normal,” USCBC spokesman Doug Barry said in an email, “but for now are taking one day at a time.”
The Treasury released its 2020 National Illicit Finance Strategy on Feb. 6, detailing a “roadmap to modernize” its regimes for anti-money laundering regimes countering terrorism financing, the agency said. In the report, Treasury said money launderers and terrorist financers often try to evade U.S. sanctions and export controls on dual-use items, frequently trying to procure controlled U.S.-origin goods and technology.
U.S. and global companies should not be concerned about other European Union member states withdrawing from the EU in the near future, trade experts said. A lengthy and complicated Brexit became a source of division within the United Kingdom, the experts said, which should serve as a deterrent for other EU member states that may have considered leaving the EU.
China’s Ministry of Finance said it will halve retaliatory tariffs on $75 billion worth of U.S. imports beginning Feb. 14, according to an unofficial translation of a Feb. 5 news release. Tariffs on some U.S. goods will fall from 10 percent to 5 percent, China said, while others will drop from 5 percent to 2.5 percent. The tariffs stem from China’s Sept. 1 tranche of retaliatory tariffs (see 1909030055).
The U.S and Kenya will begin negotiating a comprehensive trade deal that both sides believe will act as a model for more agreements between the U.S. and other African countries, U.S. Trade Representative Robert Lighthizer said Feb. 6. Kenya hopes to conclude negotiations quickly, its President Uhuru Kenyatta said at the U.S. Chamber of Commerce, adding that the country prefers a long-term agreement that will provide U.S. and Kenyan companies with “predictable terms of engagement” in the fields of agriculture, manufacturing, energy and more. Discussions on a framework for the negotiations will begin in the “next few days,” Kenyatta said.
Trump administration officials will meet this month in an attempt to resolve differences in the matter of restricting technology exports to China and Huawei, according to a Feb. 4 Reuters report. But Commerce is also discussing expanding its export control jurisdiction to a broader array of foreign sales containing U.S. goods that go beyond exports to just Huawei, according to a person familiar with the situation. “That is the one that would be a nuclear bomb for business,” the person said, adding that Commerce is discussing expanding its export control jurisdiction to “the maximum possible point.”
The Commerce Department still does not have a timeline for releasing its next set of controls on emerging technologies and its advance notice of proposed rulemaking for foundational technologies, despite expectations from top officials that both would be published before 2020, a Bureau of Industry and Security official said. “I would have thought that they would be out earlier,” said Hillary Hess, director of BIS’s regulatory policy division, speaking during a Feb. 4 Sensors and Instrumentation Technical Advisory Committee meeting. “I think everybody would like to see them come out, but I’m not sure how long it’s going to take. I’m having trouble getting a bead on it myself.”
China took a “few positive steps” to revise the draft of its export control law (see 2001100047) but should address several key areas of concern for U.S. and Chinese companies, the U.S. China Business Council said in comments released this week. The USCBC asked China to clarify the scope of its export controls and the term “national security,” provide a clearer definition for activities that are “deemed exports,” and consider more relaxed requirements for end-user statements and certificates.
As the coronavirus outbreak disrupts supply chains, U.S. agricultural exporters are unsure when normal cargo processing will resume and are concerned about penalties from ocean freight carriers, according to a Feb. 3 open letter to ocean carriers by Agriculture Transportation Coalition Executive Director Peter Friedmann.