Export Compliance Daily is providing readers with the top stories for April 5-9 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
Exports to China
The U.S. and China saw an uptick in trade restrictions during the first few months of 2021, and companies should expect more compliance challenges as they continue to contend with a variety of export controls and sanctions issues from both countries, law firms said.
The trade policy counsel at a free markets-oriented think tank said that the hike in tariffs on 70% of what we import from China has increased costs on consumers, led to an estimated 300,000 fewer jobs, and didn't achieve its aims. “That might have been worth it if China were making wholesale changes to its commercial policies, but the early indications are not positive,” Clark Packard said during an R Street Institute webinar April 9. Packard said that staffers on Capitol Hill accept his argument that tariffs are damaging to the U.S. economy, but they say that not doing anything to respond to China's quest for economic domination is not an answer.
The Senate Foreign Relations Committee released bipartisan legislation that it said will better position the U.S. to compete with China and penalize Chinese human rights abuses. The more than 200-page Strategic Competition Act of 2021, released April 8, would authorize a host of U.S. measures to tackle trade and technology competition issues with China, including sanctions, export controls and increased cooperation with allies on investment screenings. The bill focuses on countering China’s “predatory international economic behavior” and represents an “unprecedented” bipartisan effort, committee Chairman Bob Menendez, D-N.J., said. Menendez said the bill has the support to be “overwhelmingly approved” by the committee next week and the full Senate “shortly thereafter.”
Commerce Secretary Gina Raimondo suggested her agency has no plans to remove Huawei from the Entity List and said she will aggressively use trade tools to compete with China. But she also said she will prioritize efforts to invest in U.S. technology industries over imposing more export restrictions. “My broad view is what we do on offense is more important than what we do on defense,” Raimondo told reporters April 7. “To compete in the long run with China, we need to rebuild America in all of the ways we're talking about.”
Export Compliance Daily is providing readers with the top stories for March 29-April 2 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The U.S. is ceding its strategic and trade advantages in the Indo-Pacific to China, which is expanding its influence through technology exports and outbound technology investments, the Center for a New American Security said in a March 31 report. The Joe Biden administration can reverse the trend through closer cooperation with allies in the region, including Japan and India, which have been willing to deny certain Chinese investments and object to coercion attempts, CNAS said.
The Office of the U.S. Trade Representative released the 2021 National Trade Estimate Report on Foreign Trade Barriers, detailing foreign market access barriers faced by U.S. exporters. The 574-page report examines 65 U.S. trading partners and country groups, including any import policies, tariffs, customs, procedures and phytosanitary measures that are restricting U.S. goods.
The State Department on March 31 issued its annual report to Congress certifying that Hong Kong doesn’t warrant differential treatment from mainland China under U.S. law. The report follows a determination last year by the Trump administration that Beijing’s so-called national security law was infringing upon Hong Kong’s autonomy, which led to a series of U.S.-imposed trade restrictions, sanctions and export controls (see 2005270026, 2012220053 and 2103170027). Secretary of State Antony Blinken said the U.S. will continue to work with Congress and allies “to stand with people in Hong Kong against [China’s] egregious policies and actions.”
Newly confirmed Commerce Secretary Gina Raimondo interviewed Chinese technology expert James Mulvenon to head the Bureau of Industry and Security, Reuters reported March 30. It’s unclear whether the interview will lead to a “vetting” for the undersecretary post, the report said, or how many others will be interviewed. A BIS spokesperson declined to comment.