The European Commission last week said it plans to propose new foreign direct investment screening regulations by January, adding that it wants to “make better use of existing tools” to screen investments that may pose national security risks.
Exports to China
Although Dutch semiconductor equipment company ASML doesn’t expect the new U.S. export controls on China to have a “material effect” on the firm's financial outlook for 2023, it's preparing for the new rules to restrict more sales of its chipmaking equipment.
The World Trade Organization's published agenda for the Dispute Settlement Body's Oct. 26 meeting includes U.S. status reports on the implementation of DSB recommendations on: antidumping measures on certain hot-rolled steel products from Japan; antidumping and countervailing measures on large residential washers from South Korea; certain methodologies and their application to antidumping proceedings involving China; and Section 110(5) of the U.S. Copyright Act. Status reports also are expected from Indonesia on measures related to the import of horticultural products, animals and animal products, and from the EU on measures affecting the approval and marketing of biotech products.
The leaders of the House Select Committee on China are seeking information from venture capital company Sequoia on its investments in Chinese technology companies after the company announced it planned to split from its Chinese affiliate by March. In an Oct. 17 letter sent to Sequoia executives, Reps. Mike Gallagher, R-Wis., and Raja Krishnamoorthi, D-Ill., said that even though the company’s split from Sequoia Capital China is a “step in the right direction,” questions remain about whether the move will “staunch future flows of American capital to problematic” Chinese companies.
The U.S. should "lift" its newest semiconductor export controls on China "as soon as possible," China's Ministry of Commerce said Oct. 18, according to an unofficial translation. The ministry said the moves abuse export control measures, "generalize the concept of national security" and are "unilateral bullying." The country "will take all necessary measures to resolutely safeguard its legitimate rights and interests." The new controls were announced in two rules by the Bureau of Industry and Security this week (see 2310170055).
Australia's antidumping commission recommended against renewing the antidumping duties on wind towers from China when they expire on April 16, 2024. Issuing the findings of a sunset review of the duties on Oct. 16, the commission said that revoking the duties wouldn't cause damage to the domestic industry.
The Russian invasion of Ukraine changed export compliance dramatically, said Howard Mendelsohn, chief client officer for Kharon, "where the onus is on industry like it’s never been before to sort of find a way to be proactive." Mendelsohn, whose firm provides risk intelligence to businesses, spoke at an OCR Services trade compliance conference Oct. 17 in Bethesda, Maryland, outside Washington, D.C. He said exporters have to be proactive on blocking reports and applying for licenses, and importers have to find another supplier.
The U.S. this week sanctioned 11 people, eight entities and one vessel with ties to Iran’s ballistic missile and drone programs. The Treasury, Commerce and State departments, along with DOJ, also published a new advisory to alert global companies about Iran’s ballistic missile procurement activities.
The U.S. updated chip export controls announced this week will affect a number of chips marketed by Nvidia, the American semiconductor firm confirmed this week. Nvidia said it will face new license requirements for any of its integrated circuits exceeding certain performance thresholds -- including its A100, A800, H100, H800, L40, L40S and RTX 4090 -- along with any existing system that incorporates one or more of those integrated circuits, including potentially future products developed by the company.
China and Serbia signed a free trade agreement on Oct. 17, China's Ministry of Commerce announced, according to an unofficial translation. The deal marks the first of its kind between China and a Central and Eastern European country, the ministry said, touting the agreement's importance for its Belt and Road Initiative. The deal will allow both countries to achieve a "high level of mutual openness" and establish a more "preferential, convenient, transparent and stable business environment," the ministry said.