The EU could soon see a sharp uptick in its use of defensive trade policy tools, especially if Donald Trump is elected the next U.S. president and follows through with his promise of a new global tariff (see 2409110015), at least one panelist said during a roundtable discussion on EU competitiveness.
Exports to China
After initially facing scrutiny for helping to facilitate Russia-related transactions, Cypriot banks have made significant progress in improving their compliance programs in recent months and are now adhering to all U.S. sanctions rules, the country’s top banking industry officials said this week. They also said they face hurdles implementing some of the sanctions, including potential legal challenges from customers.
Congress should consider encouraging greater use of export controls and sanctions to counter a recent surge in the repression of political dissent abroad, hearing witnesses told the Senate Foreign Relations Committee last week.
Sens. Marco Rubio, R-Fla., and Jeff Merkley, D-Ore., introduced a bill Sept. 12 that would require the Commerce, Defense and Treasury departments to notify each other when adding a foreign entity or person to an export control or sanctions list. The proposed Sanctions Lists Harmonization Act is intended to improve coordination among the agencies and “prevent bad actors, such as Communist China, Russia and Iran, from taking advantage of a disjointed policy,” Rubio said. The measure, which was referred to the Senate Banking Committee, is a companion to a bill the House passed Sept. 9 (see 2409100024).
The next U.S. presidential administration will face a host of emerging technology issues in international trade, including advanced computing chips, artificial intelligence, cloud computing, data centers, quantum and telecommunications infrastructure, said Nazak Nikakhtar, a Wiley Rein partner and a former acting Bureau of Industry and Security undersecretary.
The Bureau of Industry and Security could use more export enforcement agents abroad and better analytical tools to track illegal shipments, said Matthew Axelrod, the agency’s top export enforcement official. He also said companies should expect BIS to continue to issue large corporate enforcement penalties for export control violations.
Chinese and Dutch government officials met in China this week to discuss export restrictions as part of the fifth round of the two countries’ formal export control dialogue, China’s Ministry of Commerce announced, according to an unofficial translation. Officials discussed “issues of concern in the field of export control,” China said, and “agreed to further strengthen communication and exchanges” and “jointly maintain the stability of the semiconductor industry chain and supply chain.” The meeting was held days after the Netherlands put in place new export controls over certain semiconductor manufacturing tools (see 2409090024).
The U.S. is imposing export penalties against three Chinese companies, a Pakistani company and a Chinese national for their involvement in “missile technology proliferation activities,” the State Department said in a notice scheduled to be published in the Federal Register Sept. 12.
Sen. Bob Casey, D-Pa., introduced legislation this week that would limit American outbound investment in Chinese technology and give the Committee on Foreign Investment in the U.S. more power to police Chinese investment in the U.S.
China officially requested dispute consultations with Canada at the World Trade Organization Sept. 11 regarding Canada's upcoming tariffs on various Chinese goods (see 2409040007), including electric vehicles and steel and aluminum products, the WTO announced. If consultations have failed to settle the matter within 60 days, China can request a dispute panel.