U.S. export controls on foundational technologies would impede U.S. innovation and do little to reduce national security concerns, the Computer and Communications Industry Association said in a letter to the Bureau of Industry and Security. The group urged BIS to construct a “narrowly tailored” export regime or risk stymieing U.S. leadership in a range of technologies.
Exports to China
The Bureau of Industry and Security revised its license review policy for items controlled for national security reasons and destined for China, Venezuela and Russia (see 2010230007), the agency said in a final rule released Oct. 28. The rule, which takes effect Oct. 29, said BIS and other “reviewing agencies” will determine whether those exports will make a “material contribution” to the weapons systems of the countries before approving the shipments.
China’s new export control law (see 2010190033), which takes effect Dec. 1, appears to create a Chinese “counterweight” to U.S. export controls over dual-use technologies and includes provisions for “retaliatory action and extraterritorial jurisdiction,” the Congressional Research Service said in an Oct. 26 report. China may use the new law to impose controls against specific U.S. companies, on technologies the U.S. controls or on items in which China has “niche advantages or control over certain elements of global technology supply chains.” While the new law presents risks for the U.S., it could also backfire by driving the U.S. to work closer with partners on multilateral controls and licensing practices to better counter China, the CRS said. The report summarizes the law and its definitions and includes a catalog of newly controlled technologies released by China in August.
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China has met 71% of its 2020 purchase goals for U.S. agricultural commodities under the phase one trade deal, the Office of the U.S. Trade Representative and the U.S. Department of Agriculture said in an “interim report.” The Oct. 23 report, released 11 days before the election, said the U.S. is on track for its “best year ever in sales to China.”
In a think tank effort that seems to assume a change in Washington, though never explicitly says it, the Peterson Institute for International Economics says there should be a return to more conservative use of export controls and entity lists to manage the threat of Chinese access to advanced technology for nefarious purposes. Martin Chorzempa, a PIIE research fellow, discussed a memo he authored to a future Commerce undersecretary for export controls in the next administration, during an Oct. 22 webinar at PIIE.
Like-minded democracies should establish a global technology alliance to safeguard sensitive technologies and improve export restrictions, technology and trade experts said. The alliance -- which would initially include Australia, Canada, the European Union, France, Germany, Italy, Japan, the Netherlands, South Korea, the United Kingdom and the U.S. -- should act to increase export controls on critical technologies and work to counter China’s illegal technology transfers and operations at international standards-setting bodies.
China said the U.S. has been harassing and falsely arresting Chinese students at airports amid more U.S. export control oversight relating to university research. Nearly 300 students “experienced U.S. harassment and interrogation” from May to September, a Chinese Foreign Ministry spokesperson said Oct. 21. “Their cell phones, laptops and other personal belongings were arbitrarily examined and even seized,” the spokesperson said. “We lodged solemn representations with the U.S. side many times, urging it to correct mistakes and stop discriminatory behaviors against Chinese students.”
If elected, Joe Biden will likely continue the U.S.’s strict export control and sanctions policy against China, Venezuela and Russia but may reverse U.S. sanctions against Iran, said Johann Strauss, a trade lawyer with Akin Gump. Biden would also approach trade restrictions more multilaterally as opposed to Trump’s tendency to pursue unilateral restrictions, Strauss said.
The White House released a national strategy for critical and emerging technologies that it said will better synchronize agency efforts amid technology competition with China. The strategy builds on export control efforts carried out by the Commerce Department, a senior administration official said, and will allow government offices to better align their strategies as the U.S. restricts Chinese access to sensitive U.S. technologies.