The worsening U.S.-China trade relationship is continuing to hurt U.S. companies, which are increasingly losing Chinese customers to European, Japanese and domestic Chinese firms, U.S.-China Business Council officials said. But despite the rising tensions, USCBC President Craig Allen said he is hopeful China will meet its phase one purchase commitments, and said the two sides should begin discussing phase two during an expected meeting between trade officials this week.
The State Department’s 2019 emergency arms sales to Persian Gulf countries (see 1907150033 and 1907300027) did not violate export control laws, but the agency failed to “fully assess risks” the weapons could lead to “civilian casualties” and other “legal concerns,” the Office of Inspector General said in an Aug. 11 report. The report was released days after House and Senate Democratic leaders subpoenaed four State Department officials and accused the agency of stonewalling congressional oversight of the emergency transfers and the firing of former department Inspector General Steve Linick (see 2008030046).
China sanctioned 11 U.S. citizens Aug. 10, including six lawmakers, days after the U.S. designated various Hong Kong officials for implementing Beijing’s so-called national security law (see 2008070039). Along with its sanctions, China criticized the U.S., saying it should “correct” the designations, which included asset freezes of security officials and Hong Kong leader Carrie Lam.
The U.S. announced a ban on transactions with the parent companies of TikTok and WeChat, two Chinese-owned apps that President Donald Trump said threaten U.S. national security. In executive orders issued Aug. 6, the U.S. said it will prohibit any transaction with TikTok owner ByteDance and WeChat owner Tencent Holdings, beginning in 45 days.
The U.S. on Aug. 7 sanctioned 11 top Hong Kong officials and police leaders for undermining Hong Kong’s autonomy. The designations, which came after Congress passed several bills targeting Beijing’s interference in Hong Kong (see 2007020046 and 1911290012), were the first sanctions imposed under President Donald Trump’s July executive order on Hong Kong normalization (see 2007150019).
The U.S. needs to pour more resources into research and innovation of emerging technologies to boost commercialization and outpace Chinese technology development, Sen. Marsha Blackburn, R-Tenn., said. Blackburn advocated for a methodical decoupling from China, saying the U.S. needs to reshore manufacturing of critical technologies to help U.S. industries be more competitive in foreign markets.
The Federal Emergency Management Agency will continue export restrictions on an amended list of personal protective equipment through Dec. 31, the agency said in a notice released Aug. 6. The restrictions, which were scheduled to expire this month, now cover four categories of items, including certain respirators, masks, gloves and surgical gowns -- a decrease from the six categories FEMA has restricted since April. The changes take effect Aug. 10.
U.S. export controls are set to become more of a factor at universities worldwide as U.S.-China technology competition accelerates, forcing academic institutions to adjust to an expanding basket of regulations and compliance standards, a Hinrich Foundation report said. Colleges, which already struggle with insufficient government export control guidance (see 2005120053), need to be prepared for increased controls on software and networks, placement of foreign universities on blacklists and bans on certain foreign funding, the report said.
A State Department spokesperson criticized accusations levied this week by House and Senate Democratic leaders over the administration’s 2019 emergency military sales to Gulf states, saying the agency has been transparent during a congressional probe of the sales. Reps. Carolyn Maloney, D-N.Y., Eliot Engel, D-N.Y., and Sen. Bob Menendez, D.-N.J., subpoenaed four State Department officials Aug. 3 over what they say was an improper use of emergency powers to expedite arms sales (see 2008030046), adding that the agency was “stonewalling” their investigation.
Democratic and Republican senators called on the State Department to do more to pressure the Nicolas Maduro regime in Venezuela, saying the U.S.’s approach, which they called ineffective, should include more multilateral support and stronger sanctions against Maduro’s allies. Several senators said they would back legislation to grant the administration more sanctions powers.