Cordell Hull, who has led the Bureau of Industry and Security for the last year (see 1911180040), will resign next month ahead of the incoming Joe Biden administration. His last day will be Dec. 4, a BIS spokesperson said. “I am proud of what we have achieved on important issues of national security at BIS and I have decided to look for the next challenge in the private sector,” Hull said in a Nov. 19 statement. “I am grateful to Secretary [Wilbur] Ross for giving me this opportunity to serve.”
The U.S. needs to work closer with allies on export controls and foreign investment screening to counter China, a Republican House member and two former Trump administration officials said. They said the U.S.’s current unilateral approach to trade restrictions is not working and could cede U.S. technology leadership to China.
The U.S. and other governments need to substantially increase outreach with industry before continuing to pursue export controls over emerging technologies, experts said. Although the U.S. and other governments do some outreach work, future controls will be ineffective and difficult to comply with without more industry input, they said. “It’s [like] trying to change a tire while we’re driving down the road,” said Scott Jones, a senior adviser at the Strategic Trade Research Institute, speaking during a Nov. 17 webinar hosted by STRI. “Going forward, it fundamentally has to be much more collaborative.’
More than 40 trade groups urged the Federal Maritime Commission to suspend certain detention and demurrage charges they say are being unfairly imposed by ocean carriers and marine terminals, saying the charges violate guidelines issued by the FMC in May (see 2004290037). The groups said their members have paid more than $150 million in “unreasonable” fees at the ports of Los Angeles and Long Beach and the Port of New York and New Jersey due to “massive congestion created by record setting volumes” and a shortage of labor and available chassis.
The Bureau of Industry and Security amended and clarified provisions in the Export Administration Regulations to promote compliance and better enforce the Export Control Reform Act. BIS also amended other EAR provisions related to licenses, denial orders and civil penalty payments. The changes, outlined in a final rule issued Nov. 17, take effect Nov. 18.
More than a dozen countries officially signed the Regional Comprehensive Economic Partnership on Nov. 15 after years of negotiations (see 2005130018), paving the way for lower trade barriers for a range of countries throughout the Asia Pacific. The deal -- signed by the 10 Association of Southeast Asian Nations member states and China, Japan, Australia, South Korea and New Zealand -- aims to become an “unprecedented mega regional trading arrangement,” the countries said in a joint statement, covering a market of about 2.2 billion people.
Trump Administration Considering More China Export Restrictions, Sanctions Before Biden Takes Office
The Trump administration is considering imposing new export controls and sanctions against China in the coming weeks, a senior administration official said. The moves are meant to further cement Trump’s China policies under the incoming Joe Biden administration, the official said, which may find the measures difficult to reverse.
More than 20 industry groups urged the Bureau of Industry and Security to be cautious as it considers controls over foundational technologies (see 2008260045), saying the wrong approach could stifle innovation, damage U.S. competitiveness and lead to costly shifts in global supply chains. The groups said any new controls should only be imposed after a calculated process with significant input from industry, and should include license exceptions and exclusions.
When the Joe Biden administration takes office, it will likely continue the Commerce Department's emphasis on export controls and entity listings to stay ahead in technology competition with China, said Eric Sayers, an Asia-Pacific policy expert with the Center for a New American Security. Although both tools have been heavily used by the Trump administration, Biden might do more to convince allies to also impose those restrictions, especially as the U.S. fights to maintain commercial leadership in the semiconductor sector, Sayers said.
The Federal Maritime Commission plans to discuss a rise in non-compliance with its May rule (see 2004290037) on detention and demurrage charges after industry complained that the rule is being ignored, Rebecca Dye, an FMC commissioner, said during a Nov. 10 session at the Coalition of New England Companies for Trade virtual conference. She said she will soon make “recommendations” to other commissioners to address the rule and other issues, including problems surrounding container returns.