As the Bureau of Industry and Security adds new export controls on emerging technologies, it should also remove outdated restrictions on items that may no longer warrant licensing requirements, such as life jackets and fire extinguishers, the Center for Strategic and International Studies said in a report. The think tank also urged BIS to shrink the Entity List to only entities that pose the most serious national security threats and consider giving preferential licensing treatment to a broader set of countries, including Vietnam and Moldova.
Exports to China
Congress should order a review of U.S. semiconductor export controls against China and ask the administration to create a public database of entities connected to China’s military, which would help U.S. companies with their compliance practices, a congressional commission said this week. The bipartisan commission also said Congress should explore the idea of a single export licensing system to streamline export requirements overseen by both the Commerce and State departments.
President Joe Biden and Chinese President Xi Jinping will touch on some trade issues during a planned meeting in California on Nov. 15, but the two leaders won’t delve into specifics, a senior administration official said during a call with reporters last week. The two sides aren’t expecting a “long list of outcomes or deliverables” to result from the meeting, the official said. “The goals here really are about managing the competition, preventing the downside risk of conflict and ensuring channels of communication are open."
House Select Committee on China Republicans wrote to President Joe Biden, asking him to make human rights and military demands of Chinese President Xi Jinping when they meet at the Asia-Pacific Economic Cooperation summit, which will happen Nov. 15-17.
Trade ministers from Japan, the U.S., the EU, the U.K., France, Canada, Germany and Italy said they will work to reach an agreement on World Trade Organization reform "with the view to having a fully and well-functioning dispute settlement system accessible to all members by 2024." The binding appellate level of dispute settlement at the WTO has been defunct since late 2019, because the U.S. blocked all appointments to the appellate body.
The U.S. should convince Japan, the Netherlands and other allies to restrict exports of lower-level chipmaking equipment to China to prevent Beijing from becoming the global leader in the "foundational" semiconductors those tools can produce, the Silverado Policy Accelerator think tank said in a new report last week. The report warned that current restrictions on advanced equipment risks pushing China to instead dominate the foundational chip sector, which will increase the likelihood that those semiconductors will be incorporated in U.S. defense technologies and could help Chinese companies “climb the value chain in leading-edge nodes, whether through legitimate or illegitimate means.”
South Korea will look to Tanzania, in addition to ramping up domestic production, to secure graphite as a result of China's impending export controls on the critical mineral (see 2310200030), South Korea's Ministry of Trade, Industry and Energy said this month, according to an unofficial translation. The agency said it will need to continue to monitor the situation and will look to "secure additional response capabilities" by supporting domestic artificial graphite production and securing long-term supply contracts with "private companies with mines in third countries such as Tanzania."
The Commerce Department should add China-affiliated public security bureaus and others to the Entity List for their involvement in a “mass DNA collection project” in Tibet, chairs of the bipartisan Congressional-Executive Commission on China said in a letter this month to the Biden administration. They said Chinese officials in Tibet have likely purchased DNA kits and replacement parts from American biotechnology company Thermo Fisher Scientific and are using those products for “political identification,” racial profiling and other “egregious” human rights abuses.
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Multinational companies with operations in China are becoming increasingly concerned about facing retaliatory measures from Beijing for complying with Western sanctions, said Erika Trujillo, co-founder of SEIA, a compliance risk management firm. She noted that some businesses have begun to split their trade compliance efforts between a Western-focused team and a Chinese team to protect their Chinese employees and operations from potential penalties.