U.S. priorities during the World Trade Organization's upcoming 13th Ministerial Conference should center on extending the moratorium on e-commerce duties and advancing the second wave of talks on curbing harmful fisheries subsidies, witnesses said at a Feb. 7 hearing of the House Ways and Means Subcommittee on Trade.
Exports to China
The House Foreign Affairs Committee late Feb. 6 approved a bill that would make inflation-based adjustments to the dollar thresholds that trigger congressional notification of arms sales.
The U.S. and other governments have so far placed export controls only on advanced semiconductors because they may believe restrictions on a broader, more mature set of chips won’t be effective, experts said this week.
The top Democrat on the House Select Committee on China said he believes Congress will be able to overcome its internal disagreements to pass legislation restricting outbound investment in China.
China recently updated the list of products whose foreign production facilities are required to register under Decree 248, the USDA Foreign Agricultural Service said in a report this month. China removed from the list 74 products and added 56 products, impacting certain dairy products, aquatic products, nuts and seeds, edible oils, grain products, beverages, frozen fruits, dry fruits and canned fruits. It said: "Some of the updates are not complete removals of the products but additions of the same products with different Customs, Inspection, and Quarantine (CIQ) codes created for China Customs’ use."
Beijing recently warned Japan not to take any moves that could disrupt supply chains with China following reports that Tokyo could soon tighten its restrictions on certain technology exports.
The U.S. unsealed an indictment this month charging seven people with helping Iran violate U.S. sanctions through a billion-dollar smuggling network that sold oil to buyers in China, Russia and Syria. DOJ also seized $108 million that the network tried to launder through correspondent accounts at U.S. banks.
The Treasury Department should “carefully scope” its proposed new outbound investment restrictions (see 2308090066 and 2310050035) to ensure U.S. capital does not help China’s military develop its artificial intelligence capabilities, a U.S. congressional commission heard this month.
Technology companies, trade groups, think tanks and researchers urged the government to be cautious as it evaluates its semiconductor-related export controls and prepares new ones, warning that misguided restrictions could cede American technology leadership to China, hurt the competitiveness of U.S. companies and raise the complexity of an already fraught compliance landscape.
The U.S. last week sanctioned a network of companies in Hong Kong and Iran for supplying materials and sensitive technology for Iran’s ballistic missile and drone programs. OFAC said the companies act as “covert procurement entities” for Iran and have helped the country develop its Shahed-series unmanned aerial vehicles that Iran sends to Russia for its war against Ukraine.