Even as Europe comes to see China as a systemic rival, the entanglement of the German and Chinese economies continues unabated, and what "de-risking" should look like is hotly contested, witnesses told the U.S.-China Economic and Security Review Commission at a hearing late last week.
Exports to China
The EU has so far been unable to place any meaningful export controls or sanctions against China despite urging from the U.S., leading to competitive disadvantages for American companies, Ivan Kanapathy, a China studies expert, said during a U.S. government commission hearing last week. Other experts at the hearing said much of Europe remains strongly opposed to any economic restrictions that would hurt their businesses and were skeptical that the bloc can stand up an EU-wide outbound investment screening mechanism.
U.S. Trade Representative Katherine Tai said advocates for free trade agreements who argue that 95% of customers are outside our borders are myopic.
The Bureau of Industry and Security last week issued a correction to its June 14 final rule that added 43 entities to the Entity List, including various Chinese companies that support the country’s military (see 2306120030). BIS said it mistakenly included an entity in its “preamble justification” for the additions “but inadvertently did not instruct, nor provide regulatory text for, the addition of the entity to the Entity List.”
Rep. Scott Perry, R-Pa., introduced a bill last week that could lead to new sanctions against people or entities tied to “forced organ harvesting” in China. The text of the bill, which so far has seven additional Republican co-sponsors, wasn’t yet available.
The chairmen of the House Small Business Committee and the House Select Committee on China are asking for a detailed briefing by the end of June on DOJ's efforts to combat Chinese intellectual property theft.
The Office of Foreign Assets Control this week sanctioned two North Korean nationals involved in procuring equipment and materials for the country’s ballistic missile program. OFAC said Choe Chol Min, based in Beijing, works with North Korean weapons trading officials, Chinese nationals and others to purchase “a range of items” used to produce missiles. His wife, Choe Un Jong, also based in Beijing, is “officially assigned” to the North Korean Embassy in China and helped coordinate an order for dual-use bearings that are used in the missiles.
Lawmakers in the Senate and House this week reintroduced a bill that could require the Commerce Department to block exports of sensitive personal data to certain high-risk countries (see 2306010042). The Protecting Americans’ Data from Foreign Surveillance Act, originally introduced during the last Congress, would also look to restrict personal data exports by firms, such as TikTok, “directly to restricted foreign governments, to parent companies in restricted foreign countries” and to parties designated on Commerce’s Entity List. Export penalties would apply to “senior executives who knew or should have known that employees below them were directed to illegally export Americans’ personal data.”
China lifted the ban on deboned beef, under 30 months old, from Belgium and Poland, according to unofficial translations of a pair of June 15 notices. The General Administration of Customs said it will create the inspection and quarantine requirements for the beef imports in a later announcement.
Although the Bureau of Industry and Security last month said it doesn’t have a draft rule in place to increase export licensing requirements for Huawei, exporters would be wise to still expect a tightening of restrictions against the Chinese telecommunications company, industry officials said this week. They also didn’t rule out BIS soon increasing export controls against China in other ways, including by potentially adding more items to the scope of its military end-use and end-user (MEU) rule requirements.