The House passed a bill and a resolution Jan. 8 aimed at protecting the competitiveness of U.S. manufacturers and exporters in the 5G sector. The measures also seek to improve the U.S.’s presence at international bodies that set standards for 5G networks and equipment over fears that China will permanently surpass U.S. 5G technology and control the market. The House passed the Secure 5G and Beyond Act, which requires several federal agencies, including the Commerce Department, to “protect the competitiveness” of U.S. companies by completing an assessment of the competitiveness and vulnerabilities of U.S. manufacturers and suppliers of 5G equipment. The bill also requires the agencies to identify “policy options” to close “security gaps” in the U.S. development of “critical technologies.”
Exports to China
China’s Commerce Ministry criticized the U.S. Commerce Department's decision to place export controls on geospatial imagery software (see 2001030024) and said the U.S. export control system will harm U.S. companies. U.S. export controls, which are scheduled to be imposed on a range of emerging technologies (see 1912160032), will also cause global market uncertainty, China said.
The Export Control Reform Act may not result in significantly different controls on emerging technologies (see 1912130055) than what would have been proposed under the U.S.’s existing export control system, a former top Commerce Department official said. Eric Hirschhorn, former undersecretary for the Bureau of Industry and Security from 2010-2017, also said Commerce’s efforts to restrict sales of foundational technologies might be too late. “I have grave doubt whether the assignment to control emerging and foundational technologies will result in controls significantly different from what the existing system -- which operates fairly well -- would have produced,” Hirschhorn said in a Jan. 3 post for China Business Review.
China’s Department of Foreign Trade recently introduced policies to “increase support and guidance” for border trade and the tax environment, the Hong Kong Trade Development Council said in a Jan. 8 report. The policies include “improving the functions of border trade zones,” a value-added tax exemption and a simplification of the declaration process “for small-scale border trade exports on a trial basis,” the report said. The policies will also support the development of “new models of e-commerce suited to border trade,” HKTDC said.
China’s Foreign Ministry criticized a report released this week by the Congressional-Executive Commission on China that called for U.S. sanctions on Chinese officials, saying the commission has no “objectivity or credibility whatsoever.” The report, issued Jan. 8, also called for greater U.S. export controls on surveillance technologies being sent to China and urged the Trump administration to place more Chinese companies and agencies on the Commerce Department’s Entity List due to their involvement in human rights violations (see 2001080039).
Seko Logistics bought Air-City, a New York-based freight forwarder and cross-border e-commerce company, Seko said in a news release. The terms of the deal were not released but Seko said it was its largest acquisition ever. “Air-City will give us immediate depth in the growing westbound airfreight and cross-border ecommerce trade for goods going to China,” Seko CEO James Gagne said. “Air-City also gives us strategic airfreight volumes and expertise into China as the rising demand for US goods increases along with a rising middle class in China. We have also added strength to our U.S. import services with the all-important ‘Section 321’ and Type 86 entries for e-commerce capabilities that are so critical for cross-border ecommerce into the United States as well as a network of bonded warehouses in the United States.”
The Trump administration should sanction Chinese officials and companies responsible for human rights violations against the country's Uighur population, the Congressional-Executive Commission on China said in a Jan. 8 report. The U.S. should also place export controls on a wide range of emerging technologies, add more Chinese agencies to the Commerce Department’s Entity List and make these issues key components of trade negotiations with China, the report said.
China’s Commerce Ministry recently issued a circular containing 30 policies aiming to improve the trade environment in the Hainan pilot free trade zone, according to a Jan. 8 report from the Hong Kong Trade Development Council. The policies will support “construction of ports importing drugs and biological products for the first time,” HKTDC said. They will also improve the shipping sector by allowing foreign ships to be “chartered for temporary transportation under specific conditions,” permitting “international ship management companies to engage in seafarer assignment service,” the report said.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he's been told it's going to take three or four days for six other Senate committees to clear the U.S.-Mexico-Canada Agreement so that it can go to the floor for a vote. Whether it can come up the week of Jan. 21 will depend on whether the articles of impeachment have arrived by then, he noted.
The U.S. will impose further sanctions against Iran in response to its recent missile attacks on a U.S. military base in Iraq, President Donald Trump said Jan. 8. Trump called the measures “punishing economic sanctions,” which will “remain until Iran changes its behavior,” including abandoning its pursuit of nuclear weapons. Details of the sanctions were not immediately released.