China this week criticized the recent U.S. restrictions on outbound investment in three advanced technology sectors in China (see 2308090066).
Exports to China
Lawmakers, business groups and think tanks gave a mixed bag of immediate feedback on the Biden administration’s executive order restricting outbound investments in China, with some applauding the government’s initial, cautious approach, and others expressing frustration that the restrictions don’t go far enough.
Citing a Financial Times report that Chinese artificial intelligence developers are evading controls on advanced semiconductors by using cloud services, members of the House introduced a bill to stop those practices, called Closing Loopholes for the Overseas Use and Development of Artificial Intelligence (CLOUD AI). The bill was introduced last month, and its text published this week.
The Biden administration this week unveiled its plans for a new outbound investment screening regime, which will restrict investments in three advanced technology sectors in China and set notification requirements for other sensitive outbound investments. The new screening regime, outlined in an executive order signed Aug. 9 by President Joe Biden, will come into force after the Treasury Department writes regulations. The agency is soliciting public comments on how it should implement the program, set certain definitions, impose due diligence requirements and more as part of an advance notice of proposed rulemaking released along with the order.
The Bureau of Industry and Security concluded a round of interagency review for a final rule that could expand nuclear nonproliferation export controls on China and Macau. BIS sent the rule for review July 24 (see 2307260008), and the Office of Information and Regulatory Affairs said it was sent back Aug. 7 with some changes.
The EU renewed the antidumping duties on tungsten carbide from China for another five years after an investigation showed the European industry would be harmed from dumped imports if the duties lapsed, the Directorate-General for Trade announced Aug. 9. Tungsten carbide is used to make hard metal tools in the "construction, mining, automotive and defence industries."
The European Commission doubled the antidumping duties on optical fiber cables from China following an investigation that found Chinese exporters "were attempting to impede the effects of the original measures," the Directorate-General for Trade announced Aug. 9. The commission said Chinese optical fiber cable exporters deliberately dropped their prices to bar the effects of the original duties, in place since November 2021. The new duties on optical fiber cable entering the EU from China will range from 39.4% to 88% -- twice the original duties and "the maximum increase allowed."
The Biden administration Aug. 9 unveiled its plans for a new outbound investment screening regime, which will restrict U.S. investments in three advanced technology sectors in China and set notification requirements for other sensitive outbound investments. The new screening regime, outlined in an executive order to be signed by President Joe Biden, will prohibit certain investments in entities operating in China’s quantum information technology, artificial intelligence and semiconductor/microelectronics industries, namely those that transfer technological “know-how” to Chinese companies, a senior administration official said during a call with reporters. The prohibitions will take effect after the Treasury Department solicits public comments, writes and finalizes regulations.
The U.S.-China Economic and Security Review Commission is seeking submissions from contract researchers to prepare a “concise, one-time unclassified report” on China’s advanced remote sensing technologies and applications. The report should assess China's objectives and approach to advanced remote sensing technologies; the state of China's research and development around the technology and competitiveness of China's industry in this area; Chinese investments in U.S. advanced remote sensor companies; and China's use of these technologies for military purposes. The commission is accepting proposals through 5 p.m. EDT Sept. 8
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