The Bureau of Industry and Security this week released a second correction to its final rule earlier this month that expanded the scope of its nuclear-related export controls on China and Macau (see 2308110019). The correction fixes the Commerce Country Chart that was included in the original final rule. BIS also made a fix to the rule Aug. 17, correcting an "inadvertent error” in the rule’s “regulatory instructions” (see 2308170064).
Exports to China
Researchers at the Center for Strategic and International Studies expect the U.S. will get "a taste of its own medicine” when China appeals its loss over Section 232 retaliatory tariffs at the World Trade Organization, adding that China likely won't have to drop the tariffs since there is no appellate body to take that appeal.
The U.S. and China launched a new commercial trade working group and a new pathway to exchange information on export control enforcement, two initiatives to allow the countries to better communicate around sensitive trade issues, the Commerce Department announced during meetings between Washington and Beijing officials this week. The export enforcement information sharing initiative, which will meet for the first time this week, is aimed at reducing “misunderstanding” surrounding U.S. policies toward China, Commerce said, including export restrictions on critical and sensitive technologies.
The Committee on Foreign Investment in the U.S. may continue to see a drop in short-form declarations, particularly if more declarations continue to result in full filings, said Laura Fraedrich, a lawyer with Lowenstein Sandler. She said the decrease in declarations submitted to CFIUS last year -- the first drop since the concept was introduced in 2018 -- highlights the challenges investors face in assessing how best to approach CFIUS.
A World Trade Organization dispute panel issued a report Aug. 24 concluding the panel's work following China and Australia's agreement regarding China's antidumping and countervailing duties on Australian barley.
Taiwan is requiring a certificate of origin and customs approval before certain Chinese-origin chipmaking equipment can be shipped to the U.S. The requirement will apply to shipments of certain “machine tools operated by laser processes, of a kind used solely or principally for the manufacture of printed circuits, printed circuit assemblies, parts” or “parts of automatic data processing machines,” Taiwan's Bureau of Foreign Trade announced this month.
China will suspend all imports of aquatic products from Japan starting Aug. 24 in response to Japan's release of nuclear-contaminated water into the ocean (see 2308220022), the General Administration of Customs announced, according to an unofficial translation. The customs administration said the move, which also covers edible aquatic animals, is meant to shield the health of Chinese consumers and ensure the safety of food imports.
French Finance Minister Bruno Le Maire said the French government will strengthen controls on foreign investment to include companies involved in the extraction and processing of critical raw materials. Le Maire pointed to export controls imposed on gallium and germanium by China as evidence of the measures' and minerals' importance (see 2308150028).
A bill was introduced in the House that could lead to new export controls on genetic mapping technology and sanction entities in China and elsewhere involved in certain genetic mapping efforts. The bill would specifically direct the Commerce Department to deny licenses for those exporting these items to certain countries unless the exporter can submit documentation to the government "to demonstrate by clear and convincing evidence that, if the license is approved, the technology will not be used for human rights abuses or by an entity that has engaged in human rights abuses."
U.S. Trade Representative Katherine Tai, speaking Aug. 24 to other G-20 trade ministers, said the U.S. wants to reform the World Trade Organization by improving compliance with -- and enforcement of -- WTO members' commitments, "restoring efficacy to the negotiating arm; ... equipping the Membership to address unfair practices and global market distortions, and putting the organization on the footing to promote trade policies that build resilience and address current global challenges."