A new proposed rule from the Treasury Department could make investment advisers subject to certain anti-money laundering and counter-terrorism financing requirements under the Bank Secrecy Act. The agency said the measures could close a loophole that allows sanctioned companies, including in China, to invest in U.S. companies and access sensitive technology.
Exports to China
Policy experts and former government officials speaking on a panel this week mostly agreed that the U.S. should impose sectoral-based outbound investment restrictions on China rather than individual investment sanctions on specific entities, saying a sector approach would be much simpler and more effective. And although some companies say it will be too challenging to comply with a broad investment ban on sensitive Chinese technology sectors, one expert said it will be easier than the financial industry is letting on.
Four lawmakers are urging the Biden administration to consider placing Chinese biotech company WuXi AppTec and its subsidiaries on the Commerce Department’s Entity List, the Treasury Department’s Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List and the Defense Department’s Chinese Military Companies List. They said the firm has close ties to the People’s Liberation Army (PLA) and the Chinese Communist Party (CCP) and has been involved in perpetrating the CCP's human rights violations.
China and Honduras this month signed an early harvest free trade agreement after conducting three rounds of trade negotiations, China’s Ministry of Commerce said. “Both parties agreed to implement their respective domestic procedures and promote the early entry into force of early harvest arrangements,” the ministry said, according to an unofficial translation. “At the same time, we will accelerate the negotiation of the free trade agreement and strive to complete it as soon as possible.”
Rep. Mike Gallagher, R-Wis., chairman of the House Select Committee on China, announced Feb. 10 that he won't run for re-election this year. Gallagher said it is time for him to return to private life after serving four terms in the House. As the committee's top Republican, Gallagher led probes on a range of China trade issues, including a report in December that called on the U.S. to impose stronger export controls against China (see 2312120050) and revoke the country's permanent normal trade relations status (see 2312120004).
Rep. Mike Gallagher, R-Wis., chairman of the House Select Committee on China, said Feb. 10 that he welcomes news that United Arab Emirates-based artificial intelligence firm Group 42 Holdings (G42) has sold its stake in Chinese companies.
The Treasury Department last week released its 2024 money laundering, terrorist financing and proliferation financing risk assessments, highlighting areas where companies can focus compliance resources and help “inform their own risk mitigation strategies.”
U.S. enforcement officials last week continued to warn about upcoming export control penalties, saying they hope those cases encourage companies to devote more resources to their compliance programs.
Exporters are reporting container costs changing from week to week due to attacks by Houthi rebels on commercial cargo ships moving through the Red Sea, said Eric Bartsch, the secretary of the USA Dry Pea & Lentil Council and the American Pulse Association. Bartsch, speaking during a Feb. 7 Federal Maritime Commission hearing on Red Sea shipping disruptions (see 2402070078), said many of pea, lentil and pulse exporters are small businesses, and 65% of their crops are exported.
A Missouri-based defense contractor illegally sent export-controlled military technology data overseas to produce items for his contracts with the Defense Department, DOJ announced last week.