Citing a Financial Times report that Chinese artificial intelligence developers are evading controls on advanced semiconductors by using cloud services, members of the House introduced a bill to stop those practices, called Closing Loopholes for the Overseas Use and Development of Artificial Intelligence (CLOUD AI). The bill was introduced last month, and its text published this week.
Anabel Gonzalez, one of the World Trade Organization's deputy directors-general, said in a farewell column that although progress is being made on improving the WTO, "governments face some tough choices in the months and years to come to deal with pressing matters that, if left unchecked, could seriously erode the multilateral trading system and damage trade as an engine of growth and prosperity."
Rep. Rick Larsen, D-Wash., one of the shrinking number of members of Congress who advocate for engaging with China rather than punishing it, recently published a white paper of his views on how to manage competition with China, how to use both offensive and defensive measures to compete with China, how to improve U.S. governance and competitiveness, and how to identify areas of cooperation.
Sayari, a firm that sells risk intelligence to companies with international trade compliance needs, demonstrated how its ability to find and analyze data can help an importer of laminates, flooring or timber evaluate the risk that the wood was harvested illegally in Brazil.
The Haiti Criminal Collusion Transparency Act, a bill that requires the State Department to report on ties between criminal gangs and political and economic elites in Haiti (see 2302140049 and 2303280040), and asks the administration to impose sanctions based on what it finds, passed the House by voice vote July 25.
Commerce Secretary Gina Raimondo, whose department is responsible for three of the four pillars in the Indo-Pacific Economic Framework, told a think tank audience that she is "determined to finalize agreements with all of these countries on all three pillars I’m managing" by a summit at the end of November. The IPEF, which does not liberalize tariffs but does seek to lower non-tariff barriers in its trade pillar, also includes a tax and anti-corruption pillar, an infrastructure and decarbonization pillar, and a supply chain pillar, which was already agreed to earlier this year.
A readout from the Office of the U.S. Trade Representative after the latest round of talks between the trade representative and her EU counterpart on a steel and aluminum deal suggested she does not think the EU is thinking big enough. The U.S. and the EU are trying to agree on a system that would preference steel and aluminum made with a lower carbon footprint, and, at the same time, a system that would keep metals produced through non-market excess capacity out of their countries.
The House Select Committee on China's chairman and ranking member acknowledged that momentum for legislation on TikTok has dissipated, but Chairman Mike Gallagher, R-Wis., said that behind the scenes he and others are working on "compromise language that will avoid some of the pitfalls of the Senate's approach, which a lot of people on my side felt was too broad ... which still does what we want it to do, which is ban [TikTok] or force a sale."
The Biden administration will complete its review of the Section 301 tariffs "this fall," U.S. Trade Representative Katherine Tai wrote to senators, and while she did not commit to any course of action, she wrote: "As part of the 4-Year Review of the Section 301 tariffs, USTR is reviewing the effectiveness of the tariffs in achieving the objectives of the investigation, as well as the effect of the tariffs on consumers, workers, and the U.S. economy at large. As part of this review, we are considering the existing tariffs structure and how to make the tariffs more strategic in light of impacts on sectors of the U.S. economy as well [as] the goal of increasing domestic manufacturing."
A former senior export control official with the Commerce Department told the House Select Committee on China that he thinks the Entity List is ineffective against China, because countries can change their names, establish partnerships, change locations, and because the Entity List is a "meat cleaver" approach, given that listed parties are subject to very strict licensing requirements.