The Congressional Research Service issued a report Oct. 26 on U.S. semiconductor policy and global competition, including an analysis of the semiconductor supply chain, the current industry landscape and semiconductor-related legislation. Congress has introduced multiple bills to provide federal funding and incentives for the semiconductor industry (see 2007240010), but questions remain about how large federal tax benefits should be, how much the federal government should invest in research and development, and how long the funding and incentives should be sustained, the CRS said. The U.S. should also consider how partners and adversaries would respond to moves such as federal investment in R&D-related activities such as workforce training or federal spending to “ensure a domestic production source for some or all national security applications,” and whether the efforts should be made in collaboration with other “like-minded” countries “to incentivize R&D and supply chains and to counter China’s state-led policies.”
Two House Republicans applauded the White House’s national technology strategy for emerging and critical technologies, saying the strategy will help better coordinate agency efforts against China. Reps. Greg Walden of Oregon and Cathy McMorris Rodgers of Washington said the strategy prioritizes U.S. efforts to maintain a “competitive edge” over China in emerging technologies. “This national strategy will streamline and better coordinate the federal government’s efforts in this space, ensure emerging technologies are created and deployed based on Western values, and set an example for fellow freedom-loving nations to follow suit,” Walden and Rodgers said in an Oct. 16 statement.
Two U.S. senators urged the Trump administration to impose sanctions against Turkey for its purchase of Russian missile systems and criticized the Defense Department for not moving fast enough to remove Turkey from F-35 supply chains. Sens. Chris Van Hollen, D-Md., and James Lankford, R-Okla., said the State Department should immediately impose asset freezes under the Countering America’s Adversaries through Sanctions Act, adding that Turkey has “no intention of reversing course and divesting of this system.”
The U.S. should expand federal funding for technology research to help U.S. industries lead in areas such as quantum computing, artificial intelligence and biotechnology, a House subcommittee said in an Oct. 6 report. The report outlines revisions for the U.S. intelligence committee to better support U.S. innovation and research, and said the government needs to act or risk falling behind in technology competition with China.
The Commerce Department should reverse its decision to approve more than 455,000 pounds of graphite exports to China, Senate Democrats said, saying the material could be used to expand China’s missile forces. In an Oct. 5 letter to Commerce Secretary Wilbur Ross, five senators said Commerce recently notified them of the sale, which may have a “dangerous end-use” in bolstering China’s military.
Fifty senators, including 42 of 53 Republicans, wrote to U.S. Trade Representative Robert Lighthizer this week, asking that the administration “begin the formal process of negotiating a comprehensive trade agreement with Taiwan.” The first step of the formal process would be notifying Congress, then soliciting input into negotiating priorities.
A task force led by Republican House members recommended more trade agreements, engagement at the World Trade Organization, and “a strategic plan for Phase Two negotiations” with China to address distorting subsidies, dominance of state-owned enterprises that dictate the terms of trade and data, and forced tech transfer and joint venture requirements. It also said the U.S. should be aggressive in enforcing the China phase one agreement, particularly on forced tech transfer, intellectual property and barriers to agriculture imports.
Three Democratic senators introduced a bill that would impose more restrictions on arms sales to protect against human rights violations. The bill -- introduced Sept. 24 by New Jersey's Bob Menendez, Vermont's Patrick Leahy and Virginia's Tim Kaine -- would amend the Arms Export Control Act by imposing more conditions before certain arms sales can be completed.
Senate Minority Leader Chuck Schumer and his fellow New York colleague, Sen. Kirsten Gillibrand, sent a letter to U.S. Trade Representative Robert Lighthizer and the Agriculture Secretary Sonny Perdue, urging them to monitor the elimination of Class 6 and Class 7 pricing programs in Canadian dairy, the avoidance of geographical indications for cheese names in Mexico, and the implementation of more generous tariff rate quotas for dairy imports in Canada. “While the new tariff-rate quota commitments were intended to provide U.S. dairy producers with greater access to Canada’s dairy market, it is our understanding that Canada’s announced TRQs place U.S. producers at a disadvantage and are inconsistent with the market access provisions secured in agreement,” they wrote Sept. 15.
Sen. Marco Rubio, R-Fla., urged the Committee on Foreign Investment in the U.S. to review the potential purchase of Pennsylvania-based GNC Holdings by Harbin Pharmaceutical Group, a state-controlled Chinese pharmaceutical company. Rubio said the purchase falls within CFIUS’s purview because it involves a Chinese company acquiring sensitive data on “millions” of GNC Holdings’ customers and retail locations “on and around military installations” across the U.S.