China will implement lowered temporary import tariffs on more than 850 products in 2020, including frozen pork, avocado, orange juice and certain types of semiconductors, China’s Ministry of Finance said in a Dec. 23 notice, according to an unofficial translation. The tariffs, which will take effect Jan. 1, 2020, are lower than the most-favored-nation rates and will be used to import “consumer goods” that are “relatively scarce,” in China, the ministry said in a statement.
A bipartisan group of 161 House members are asking U.S. Trade Representative Robert Lighthizer to open negotiations for a free trade deal with Taiwan. The letter, sent Dec. 19, was led by Rep. Steve Chabot, R-Ohio, Rep. Albio Sires, D-N.J., Rep. Mario Diaz-Balart, R-Fla., and Rep. Gerry Connolly, D-Va. “Taiwan is a longstanding ally and a like-minded partner in the Indo-Pacific region that upholds and shares our values. Taiwan is our 11th largest trading partner worldwide, the 8th largest export market for U.S. agricultural products, a major purchaser of U.S. LNG exports, and the supplier of a significant amount of the semiconductors used by our manufacturers in their finished goods,” they said. “As the trade and investment relationship with Taiwan already supports an estimated 373,000 U.S. jobs, working toward the negotiation of a high-standard and comprehensive U.S.-Taiwan bilateral trade agreement would further enhance our shared goal of enhancing the global competitiveness of U.S. industries while spurring American job creation.”
The Commerce Department plans to release its first set of proposed controls on emerging technologies in six areas, including the semiconductor and artificial intelligence sectors, a top Commerce official said. The six proposed rules (see 1912130055), which may not be released until early next year, include restrictions on items in the fields of quantum technology, semiconductor design, chemicals, biotechnology, artificial intelligence and possibly 3D printing, said Matt Borman, Commerce’s deputy assistant secretary for export administration. The controls stem from an advance notice of proposed rulemaking published more than a year ago.
The Commerce Department is considering a host of expanded restrictions on foreign shipments to Huawei containing U.S. technology, said Rich Ashooh, Commerce’s assistant secretary for export administration. The agency is discussing expanding the Direct Product Rule -- which subjects certain foreign-made products containing U.S. technology to U.S. regulations -- and a broadened de minimis rule, Ashooh said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. Ashooh’s comments confirmed details in a Nov. 29 Reuters report that said the U.S. was discussing ways to restrict more foreign exports to Huawei (see 1912040014).
An Iranian businessman was sentenced to 46 months in prison for illegally exporting carbon fiber from the U.S. to Iran, the Justice Department said Nov. 14. Behzad Pourghannad worked with two others between 2008 and 2013 to export the carbon fiber to Iran from third countries using falsified documents and front companies, the agency said.
Huawei is urging suppliers to move operations offshore to avoid U.S. sanctions and export controls, which would violate U.S. law, according to a Dec. 3 Reuters report. The Chinese technology giant has been “openly advocating” for companies to escape the jurisdiction of U.S. controls so sales can continue, Commerce Secretary Wilbur Ross told Reuters. “Anybody who does move the product out specifically to avoid the sanction ... that’s a violation of U.S. law,” Ross said. “So here you have Huawei encouraging American suppliers to violate the law.”
China’s Ministry of Commerce recently published a list of antidumping measures that will expire in 2020, according to a Dec. 2 report from the Hong Kong Trade Development Council. Antidumping duties on certain polyamide chips from the U.S., Italy, France and Taiwan will expire Oct. 13; duties on adipic acid from South Korea, the European Union and U.S. will expire Nov. 2; and duties on methyl methacrylate from Singapore, Thailand and Japan will expire Dec. 1. Companies may ask China to review the expiration to potentially continue the antidumping duties by submitting an application at least 60 days before they expire, the report said. Companies who ask for the duties to continue must “believe” the expiration of the duties will lead to “injury to the domestic industry.”
A U.S. foundation representing organizations in the semiconductor technology sector will move to Switzerland due to concerns over U.S. trade restrictions, according to a Nov. 25 Reuters report. RISC-V Foundation, a non-profit, said it has not yet faced restrictions but is “concerned about possible geopolitical disruption,” according to Reuters. The move comes as the Commerce Department restricts sales to certain Chinese technology companies (see 1911180036 and 1910070076) and prepares to release proposed restrictions on emerging and foundational technologies (see 1911200045).
The Department of Commerce published its fall 2019 regulatory agenda for the Bureau of Industry and Security. The agenda includes a new mention of its intent to potentially control certain additive manufacturing equipment, or 3D printing, used in “energetic materials” as part of BIS’s effort to restrict sales of emerging technologies (see 1911210051). The notice of proposed rulemaking aims to gather feedback from industries while “discussions are ongoing” at the Wassenaar Arrangement. BIS said it aims to issue the proposed rule in November.
The Commerce Department Bureau of Industry and Security finalized some interagency reviews of Huawei license applications and will begin issuing approvals and denials on a “rolling basis,” according to Matt Borman, Commerce deputy assistant secretary for export administration. The announcement was first made by Secretary Wilbur Ross, who told Fox Business on Nov. 19 that Commerce has started “to send out the 20-day intent-to-deny letters and some approvals.” Ross also said Commerce has received about 290 “requests for specific licenses.”