The European Union needs to better coordinate with its member states on potential export controls against China’s chip industry, said Noah Barkin, a Europe-China relations expert with the Rhodium Group. Barkin, speaking during a Senate Foreign Relations subcommittee hearing this week, said the EU is still grappling with how to best impose dual-use export controls and isn’t yet at a place where it can match U.S. restrictions.
Exports to China
Argentina, Brazil and Canada recently announced antidumping and countervailing duty actions and decisions on certain products from mainland China, the Hong Kong Trade Development Council reported June 8.
A bipartisan bill introduced in the Senate and House could lead to new sanctions on entities that process or trade Iranian oil, including through ship-to-ship transfers. The Stop Harboring Iranian Petroleum (SHIP) Act would also require the Biden administration to report on the “increase of exports of petroleum and petroleum products from Iran.”
Technology academics and industry officials this week cautioned Congress about potential U.S. export controls over quantum technologies and research, saying new restrictions without clear guidance could hamper U.S. competitiveness and innovation. But one current government official suggested the administration needs to be more “proactive” in protecting the most sensitive research from being stolen.
Think tank scholars said the World Trade Organization isn't well suited to deal with technology sharing restrictions, but that the G-7 and coordinated bilateral actions have been effective so far.
China leads in a range of technologies that will be “highly relevant” to technology sharing capabilities under the Australia-U.K.-U.S. (AUKUS) security partnership, including hypersonics, electronic warfare and autonomous underwater vehicles, the Australian Strategic Policy Institute said this week. ASPI, which released the data as part of an update to its critical technology tracker, which ranks leaders in various advanced technologies, said AUKUS related critical technologies “are a two-horse race between China and the US,” but China holds a "convincing" lead in 19 of the 23 technologies newly evaluated by the think tank and "has built the foundations to position itself as the world’s leading science and technology superpower."
The U.S. announced new sanctions this week against people and entities in China, Hong Kong and Iran for helping Iran procure “sensitive and critical parts and technology” for its ballistic missile programs. The “network” has also helped the Iranian government conduct financial transactions in support of its missile development efforts and aided the country’s Ministry of Defense and Armed Forces Logistics (MODAFL), as well as other affiliated procurement organizations, the Office of Foreign Assets Control said.
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China this week criticized the U.S. Treasury Department's recent sanctions on seven Chinese entities and six individuals for supplying Mexican drug cartels with equipment used to make illegal drugs, including fentanyl (see 2305300017). According to an unofficial translation, the Ministry of Commerce said China has always strictly enforced drug control and has worked with the U.S. to "solve the fentanyl issue." The sanctions are an "attempt to confuse" and "mislead the public," the ministry said, adding that it will work to safeguard the rights and interests of Chinese companies and individuals.
The U.S. should push the World Trade Organization to end trade-related intellectual property waiver conditions, experts told a House subcommittee this week, saying the waiver may help China acquire sensitive U.S. technologies and leapfrog American innovation in biopharma. Several experts during the hearing suggested the waivers could act as a loophole to U.S. export controls and allow Chinese companies to better compete with the U.S. in the biotechnology industry.