President Joe Biden this week renewed a national emergency declared last year that authorized the Treasury Department to impose investment restrictions on certain U.S. investments in countries of concern. The emergency was renewed for one year beyond Aug. 9. Treasury is in the process of drafting regulations to govern American investments in certain sensitive technology sectors in mainland China, Hong Kong and Macau (see 2406210034 and 2408050038).
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The chair and ranking member of the House Select Committee on China, along with a bipartisan group of 53 representatives, filed an amicus brief last week in the suit against the TikTok ban to support the constitutionality of the ban (see 2406070023) (TikTok v. Merrick Garland, D.C. Cir. # 24-1113).
Reps. Young Kim, R-Calif., and Colin Allred, D-Texas, introduced a bill last week that would authorize the U.S. president to impose property-blocking sanctions on People’s Republic of China (PRC) entities that harm the environment or public health in Africa.
The Office of the U.S. Trade Representative is requesting comments on how China and Russia are complying with their World Trade Organization commitments, including in its import regulation, export regulation, subsidies, non-tariff barriers, intellectual property rights enforcement, rule of law issues, and trade facilitation, or other issues.
Trade groups, lawyers, investment firms, technology companies and foreign governments suggested a range of changes to the Treasury Department’s proposed outbound investment rules (see 2406210034), echoing calls last year for more clarity surrounding the due-diligence steps that will be required of deal-makers and warning that the U.S. risks chilling a broad range of U.S. ventures in China (see 2310050035). Several commenters also urged the Biden administration not to finalize the new prohibitions without similar buy-in from allies, with at least one group suggesting the U.S. is further from coordinating the rules among trading partners than it has let on.
Taiwan national Pen Yu was sentenced Aug. 2 to three years and eight months in prison for conspiring to commit wire fraud in a scheme to defraud a German biochemical company and divert biochemical products to China using "falsified export documents," DOJ announced. Yu was sentenced by a federal court in Florida, which also ordered the forfeiture of the proceeds of the scheme, which amounted to $100,000.
China last week imposed sanctions against U.S. Rep. Jim McGovern, D-Mass., for frequently making "remarks and actions that interfere in China's internal affairs and undermine China's sovereignty, security and development interests," China's Ministry of Foreign Affairs announced, according to an unofficial translation. The ministry said it will impose an asset freeze and travel ban on McGovern.
Parts of the expert testimony submitted by the U.S. in a criminal export control case should be excluded from the trial because the experts relied on State Department commodity-jurisdiction determinations prepared outside the court, the U.S. District Court for the Western District of Kentucky said July 31. The court said the defendants didn't have a chance to cross-examine the State Department officials who prepared the determinations because they didn't offer testimony during trial.
The Senate Appropriations Committee is concerned that Chinese Communist Party-backed companies may be “exploiting” the U.S. bankruptcy process to obtain American companies’ sensitive and proprietary information, the panel wrote in a new report accompanying its version of the FY 2025 Financial Services and General Government Appropriations Act.