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House to Consider Some Export Control, Sanctions Amendments in China Competition Bill

The House will consider multiple sanctions and export control amendments submitted as part of its China competition bill (see 2201310064), including one that could adjust the Commerce Department's export control authority, several that could require more scrutiny on Chinese foreign investments and at least two that could lead to new China sanctions.

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But Rep. Steve Chabot, R-Ohio, who proposed several trade-related amendments that won't be considered, said he is disappointed the bill won’t propose tougher Chinese trade restrictions. Speaking during a House Rules Committee hearing Feb. 1, he said the U.S. needs stronger export controls to prevent China from achieving “technological breakthroughs,” especially in its hypersonic missile program (see 2110180016).

“You think that in a bill like this, where we're trying to counter China, that we would have gone big on export controls,” Chabot said. He added that current U.S. controls are "weak" and could be helping China develop advanced technologies. "Export controls may sound a little wonky, but it's straightforward. Do we want to give [China] technology for their next generation of weapons?" he said. “There's so many things that unfortunately could have been done in a bill like this, if we were really countering China, that were left undone.”

Several provisions that could have created significantly more oversight over some U.S. export control operations won't be considered. The chamber, for example, won't consider a 115-page amendment that would have required the Biden administration to regularly report on its efforts to control emerging and foundational technologies and create a “searchable computer database” of export license applications and adjudications, both for regular and deemed exports.

But when the America Competes Act receives a vote this week, lawmakers will consider an amendment that would “right-size" Commerce's scope of authority to regulate U.S. exports to foreign military, security and intelligence agencies. It also will consider an amendment that would require the departments of State and Agriculture to submit yearly reports on foreign investments in the American agriculture sector, an amendment that would require the director of national intelligence to report on Chinese government investments in port infrastructure, and an amendment that requires a report on certain Chinese technology transfer efforts.

Other amendments could lead to more U.S. sanctions on China. One amendment that will be considered could require a determination for whether Chinese companies implicated in using Uyghur forced labor meet certain sanctions criteria, and another would require a study on the impact of U.S. and multilateral regulations and sanctions. Another amendment would require the State Department to submit a determination to Congress on whether the Chinese Communist Party United Front Religious Work Bureau meets the criteria for sanctions.

A separate proposal would direct the Treasury and State departments to study the management of sanctions against “specific Afghan individuals” in order to “operate a foreign trade zone in Afghanistan while maintaining the United States' national security interests.” Another amendment would direct the State and Energy departments to report on the impact of sanctions on “innovation, emissions reduction, climate cooperation and economic justice.”

The House also will consider the full text of the Ocean Shipping Reform Act, which passed the House in December and would look to hold ocean carriers more accountable for unfair shipping practices (see 2112080075).