Jacob Kopnick

GOWIN Semiconductor Corporation, a Chinese technology startup, is challenging its designation as a "Communist Chinese military company" (CCMC) in the U.S. District Court for the District of Columbia, according to a May 21 complaint. In the complaint, GOWIN attempts to prove it is not operated by the Chinese military by showing that its governing board of directors is "comprised of nine private-sector executives, two of whom are U.S. citizens (the CEO and the President)." GOWIN goes on to argue that DOD's lack of notice to the tech startup of the designation and lack of evidence in coming to a conclusion on the label violates its due process rights. The firm also says it will suffer irreparable harm from the CCMC label, and in fact, already has. "By losing U.S. and global support as a result of the CCMC designation, GOWIN has lost and will continue to lose market share to similarly situated [semiconductor] companies, many of which are more mature and firmly established than GOWIN," the complaint said.

The Department of Defense has agreed to a final order dropping the designation of Chinese consumer electronics giant Xiaomi Corporation as a Communist Chinese Military Company (CCMC), according to a May 11 joint status report filed in the U.S. District Court for the District of Columbia. Xiaomi supports the order, the report said, leaving the parties to negotiate over specifics before a final proposed order is to be submitted on or before May 20.

The European Council adopted new rules modernizing the European Union's system for export controls for dual-use civil and military items, the EC said in a May 10 news release. The regulations had been in talks for years but were finally agreed to Nov. 9 (see 2011100021). The regime includes stricter controls for cyber-surveillance technology that may be used for human rights abuses, new general export licenses to authorize shipments of cryptographic items and certain “intra-group technology transfers,” and mechanisms for greater coordination between members and with trading partners.

The U.S. District Court for the District of Columbia granted a preliminary injunction for Chinese big data processing technology company Luokung Technology Corp., temporarily blocking the company's designation as a Chinese military company. Judge Rudolph Contreras issued the injunction in a May 5 ruling, finding it likely Luokung would prevail in its case against the designation. The publicly traded Chinese tech giant claims that the Communist Chinese Military Company (CCMC) designation issued by the Department of Defense was made in violation of the Administrative Procedure Act, was arbitrary and capricious, and that the evidence in hand was not substantial enough to support a finding of state control over the company.

Following the United Kingdom's departure from the European Union, the European Commission does not want to see the U.K. join the bloc's 2007 Lugano Convention -- a pact that recognizes jurisdiction and enforcement of judgment in civil and commercial matters. In a May 4 communication from the EC to the European Parliament and Council, the commission said the Lugano Convention is meant for the internal market of the EU. and because the U.K. is now a “third party without a special link to the internal market,” it does not warrant access to the convention. In its stead, the commission recommends taking the normal course of action in recognizing jurisdiction with Britain and following the framework laid out by the Hague Conventions in the field of civil judicial cooperation.

Member nations of the World Trade Organization agreed to continue consideration of the temporary waiver on certain intellectual property requirements for COVID-19 vaccine production, at an April 30 meeting of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS), the WTO announced in a press release. The waiver proposal was submitted by South Africa and India but faces opposition from some of the globe's wealthiest countries, such as the U.S., the United Kingdom and countries in the European Union, that have blocked the plan. The chair of the council is tasked with reporting to the General Council on the group's decision regarding the IP waiver at the next meeting on May 5-6.

Four months after the United Kingdom left the European Union, customs activity is stabilizing following a hectic period of trade between Britain and the bloc, said Joop Mastenbroek, director of Customs Brokerage North and Continental Europe, West Europe and Middle East Africa at logistics company GEODIS, speaking at a May 4 event hosted by the U.S. Fashion Industry Association about the leading customs challenges post-Brexit. While more exporters and importers are up to date on how to issue the right documentation to ensure smooth customs clearance, large challenges still exist. In the current market scenario, the robustness of government systems under the increased weight of declarations, challenges around products of animal origin, shortage of resources and differing customs procedures by the various EU member states stand as the most challenging customs issues, Mastenbroek said.

Chemist Xiaorong You was convicted by a federal jury in Greeneville, Tennessee, for conspiracy to commit trade secret theft, possession of stolen trade secrets, economic espionage and wire fraud, the Department of Justice announced in an April 22 press release. You, also known as Shannon You, was the principal engineer for global research at the Coca-Cola Co. and an employee at Eastman Chemical Co., where she became aware of trade secrets belonging major chemical and coating companies. The secrets were related to formulas for bisphenol-A-free coatings for the inside of beverage cans and cost around $120 million to develop. A Lansing, Michigan, resident, You stole the trade secrets to establish a new BPA-free coating company in China, receiving millions of dollars of support from the Chinese government, DOJ said.

The Comprehensive Agreement on Investment between China and the European Union will not pass the European Parliament in its current form, predicted former EU trade minister Cecelia Malmstrom at a Peterson Institute for International Economics event on April 21. Due to dueling sanctions over human rights violations in China's Xinjiang province and the agreement's lack of substance on key areas such as sustainable development, Malmstrom opined that, without alterations and a breakthrough on sanctions, the agreement would not pass.

The European Union, via the Economic Ministry of Belgium, has revoked Milwaukee-based motorcycle manufacturer Harley-Davison's Binding Origin Information (BOI) credentials, hiking tariffs on the company's entire product portfolio from 56%, the company announced in an April 19 news release. In the release, Harley-Davidson claimed the move would “effectively prohibit the company from functioning competitively in Europe,” and “underscore the very real harm of an escalating trade war to our stakeholders on both sides of the Atlantic.” The EU originally placed tariffs on motorcycles in retaliation for U.S. Section 232 tariffs on European steel and aluminum.