China’s Foreign Ministry criticized the passage of a bill in a House committee that could change Hong Kong’s special status in customs and export controls. The bill, the Hong Kong Human Rights and Democracy Act (see 1909250053), would also require the Trump administration to assess whether Hong Kong is “adequately” enforcing U.S. export control and sanctions regulations.
Exports to China
China criticized the U.S.’s decision to sanction Chinese companies and people for transferring oil from Iran, saying it will take “necessary measures” if the sanctions are not revoked. “We strongly urge the U.S. to immediately correct its wrongdoing,” a China Foreign Ministry spokesperson said during a Sept. 26 press conference, according to a transcript in English released by the Chinese Embassy in Washington. “China has taken and will continue to take necessary measures to safeguard the legal rights and interests of its businesses.”
Imposing sanctions and export controls on certain people and entities in Hong Kong for human rights violations may not achieve the U.S.’s goal and may only hurt U.S. companies, said William Reinsch, an international business chair at the Center for Strategic and International Studies.
Rep. Henry Cuellar, D-Texas, wants to ratify NAFTA 2.0, and believes the House will vote to do so in November or December. But in a speech Sept. 26 at the American Security Project, he told Mexican diplomats in the audience that they need to add more money to their labor budget.
In the Sept. 26 edition of the Official Journal of the European Union the following trade-related notices were posted:
U.S. exporters reported sales of 581,000 metric tons of soybeans to China since Sept. 1, the U.S. Department of Agriculture Foreign Agricultural Service said Sept. 25. The sales are for delivery during the 2019/2020 marketing year, which started Sept. 1. The sales report came as China said it would begin buying U.S. agricultural products, including pork and soybeans, in response to President Donald Trump’s two-week postponement of tariffs on Chinese goods earlier this month (see 1909120046).
The Treasury’s Office of Foreign Assets Control on Sept. 25 announced sanctions on two subsidiaries of COSCO Shipping Corporation and clarified that the designation does not apply to their parent company or any of other COSCO affiliates. In total, OFAC announced sanctions on five people and six entities and issued a new Frequently Asked Questions document.
Two Hong Kong bills that could affect trade with the Chinese territory passed the House Foreign Affairs Committee Sept. 25. H.R. 4270, the PROTECT Hong Kong Act, would ban the export of tear gas, rubber bullets and pepper spray to Hong Kong, so that U.S. companies aren't complicit with crackdowns on protestors (see 1909190040).
The government of Canada issued the following trade-related notices as of Sept. 25 (note that some may also be given separate headlines):
Export Compliance Daily is providing readers with some of the top stories for Sept. 16-20 in case they were missed.