The U.S. should be mindful of not harming the U.S. technology industry as it seeks to impose export restrictions on semiconductor shipments to China, said James Andrew Lewis, director of the technology policy program at the Center for Strategic and International Studies. Those restrictions could cut the U.S. off from consumers, leading foreign companies to design U.S. components out of their products and build alternate supply sources, Lewis said in a May 5 CSIS post.
Exports to China
The government of Canada issued the following trade-related notices as of May 6 (note that some may also be given separate headlines):
Export Compliance Daily is providing readers with some of the top stories for April 27 - May 1 in case you missed them.
The Commerce Department’s new export restrictions on military end-users may significantly raise due diligence requirements for industry, leading to licensing delays and a burdensome vetting process for technology companies, law firms said. If Commerce's Bureau of Industry and Security does not clarify the scope of the rule to limit its impact, the rules are likely to damage the semiconductor, telecommunications and aircraft sectors, the law firms said. “This could have a detrimental impact on a broad swath of U.S. industry,” Baker McKenzie said in an April 30 blog post. “A universe of transactions triggering license requirements could significantly increase.”
President Donald Trump suggested China may not meet its purchase commitments under the phase one trade deal and threatened to terminate the agreement if the commitments are not met. “We're going to have to see what's going on,” Trump said during a May 3 Fox News town hall event. “They have to buy. And if they don't buy, we terminate the deal. Very simple.”
Jamieson Greer, chief of staff at the Office of the U.S. Trade Representative from May 2017, is joining King & Spalding as a partner in its international trade practice. The law firm said that Greer was involved in negotiations for the phase one deal with China and the U.S.-Mexico-Canada Agreement. “He also played a key role for USTR in the legislative reform of U.S. foreign investment reviews and implementation of the Foreign Investment Risk Review Modernization Act by [the Committee on Foreign Investment in the U.S.],” the firm said. Last year, King & Spalding hired Steven Vaughn, the general counsel at USTR.
China will eliminate “purchase tax” on “new energy vehicles” from Jan. 1, 2021, through Dec. 31, 2022, China’s Ministry of Finance said in an April 22 notice, according to an unofficial translation. The measure will exempt taxes for imports of electric cars, plug-in hybrid cars and “fuel cell vehicles” when imported by Chinese car manufacturers and dealers, the notice said.
The government of Canada issued the following trade-related notices as of May 4 (note that some may also be given separate headlines):
China’s Commerce Ministry criticized the U.S. Commerce Department’s decision to increase restrictions on exports to Chinese military users, saying it will “damage the interests of related U.S. companies more.” The measures, introduced last week (see 2004280052), were examples of the U.S. “abusing export control measures and impeding normal trade and cooperation among trading partners,” a ministry spokesperson said during an April 30 press conference, according to an unofficial translation of a transcript of the event. China said governments have a “responsibility” to reduce trade barriers during the COVID-19 pandemic “rather than create obstacles,” adding that “it is hoped that the U.S. side will stop wrong practices.”
Sri Lanka recently announced a “special commodity levy” on imported fruits, according to a U.S. Department of Agriculture Foreign Agricultural Service report released April 30. The levy, which began April 17, will remain in place for two months. It is intended to help the country rebound from a lockdown associated with the COVID-19 pandemic. About a quarter of Sri Lanka’s annual $71 million worth of fruit imports originates in China, with 8% coming from the U.S. The country sources about 20% of its apples from the U.S., the USDA said.