The U.S.-China Economic and Security Review Commission earlier this month issued an updated table of Chinese companies listed on the Nasdaq, the New York Stock Exchange and the NYSE American. As of Jan. 9, 252 Chinese companies worth a "total market capitalization" of $1.03 trillion were listed on those U.S. exchanges. That valuation is an increase from the commission's last update from September, when it reported 262 Chinese companies were listed with a total market capitalization of $775.6 billion (see 2210050007). The increase is partially due to a "recent rally in Chinese stocks after U.S. regulators suspended the threat of a trading prohibition under the Holding Foreign Companies Accountable Act."
Annual encryption self-classification reports and semi-annual sales reports for certain encryption items are due to the Bureau of Industry and Security by Feb. 1, Thompson Hine said in a reminder to clients last week. The self-classification report covers less sensitive items under the BIS License Exception ENC, and must provide information on encryption commodities, software and components exported during the previous calendar year. For the upcoming semi-annual sales report deadline, BIS requires information on exports that occurred between July 1 and Dec. 31 of the previous year.
Hapag-Lloyd America said the Federal Maritime Commission should dismiss a complaint that alleged the company violated U.S. shipping regulations (see 2212280026), saying the FMC “lacks personal jurisdiction” in the matter. Hapag said Jan. 17 that Wisconsin-based logistics company M.E. Dey “incorrectly” asserted that Hapag is an ocean common carrier -- the company said it doesn’t meet the definition of a carrier.
The State Department Jan. 10 completed an interagency review of a final rule to further reorganize the International Traffic in Arms Regulations. The rule, first sent for review in November, would reorganize ITAR part 120 to consolidate all definitions into one part and “organize the definitions in a manner that enhances their clarity and ease of use,” the agency said. The agency's Directorate of Defense Trade Controls in March issued the first in a series of rules expected to reorganize the ITAR (see 2203220013).
The State Department is seeking public comments on an information collection involving disclosures of Arms Export Control Act violations. Comments are due March 14.
The Biden administration is leaning toward narrowing an expected future executive order on screening outbound investments (see 2212270030) to focus on quantum computing, artificial intelligence and semiconductors, Axios reported Jan. 12. Although the final language hasn’t been approved, officials are considering omitting certain critical technology sectors in the order, including biotechnology and battery technology, the report said. The order may still be “several months away,” the report said, adding that the U.S. is unlikely to issue the order before Secretary of State Antony Blinken’s visit to China next month. The administration is currently soliciting feedback and input from lawmakers, subject matter experts, trading partners, think tanks, the financial services sector and others, the report said. The White House didn't comment.
Foreign companies in the critical minerals sector should expect to see increased investment review scrutiny among the U.S. government and its allies, Holland & Knight said in a January client alert. The firm pointed to the Biden administration’s September executive order outlining priorities for the Committee on Foreign Investment in the U.S. (see 2209150053) -- as well as “enhanced” review policies by Australia and Canada -- as signs that critical mineral supply chains are receiving extra government attention.
The State, Commerce and Defense departments are planning virtual seminars on U.S. export controls for the government, industry and academic communities in Australia, Canada and the U.K. The seminars, which will be open to the public, will cover “topics related” to the Export Administration Regulations, International Traffic in Arms Regulations and the Foreign Military Sales program, and will be “specifically tailored” to industry and government officials located in the three U.S. trading partners. Because of time zone differences, the seminar for Canada and the U.K. will be held Jan. 23-26, and the Australia seminar, Feb. 6-8 (Feb. 7-9, Canberra time). Registration requests should be sent to DDTCRSVP@state.gov.
A new German strategy toward China could lead to more strict scrutiny of Chinese-related investments, Cleary Gottlieb said in a Jan. 9 client alert. The strategy, which hasn’t yet been released, is expected to “focus on decoupling Germany’s economy from China,” including in critical supply chains and key technologies, the firm said, and could lead to an outbound investment screening tool in certain “security-critical areas abroad.” Even if the country’s foreign direct investment regulations are “unchanged” by the strategy, it likely still will have some impact on the country’s investment screening decisions and could lead to more “strict scrutiny of foreign direct investments from or into China,” the firm said.
Major ocean carrier MSC denied allegations that its demurrage practices violated U.S. shipping regulations, saying a December complaint from U.S. metal trader CCMA lacks “meritorious factual basis.” MSC asked the Federal Maritime Commission to dismiss the complaint.