China has taken “numerous actions” to begin implementing its agricultural purchase commitments under the U.S-China phase one trade deal, the Office of the U.S. Trade Representative said Feb. 25. China recently announced it will allow imports of U.S. “fresh chipping potatoes” (see 2002240011), lifted an import ban on U.S. poultry and poultry products (see 1911140019) and lifted restrictions on certain pet food imports (see 2002240010) from the U.S. China also updated its list of facilities approved for exporting animal protein, pet food, dairy, infant formula and tallow, updated the list of goods that can be exported to China as feed additives and updated an approved list of imported U.S. seafood species.

Discussions within the Commerce Department to expand U.S. export control jurisdiction over foreign exports to Huawei and beyond would have a chilling effect on the U.S. semiconductor industry, said John Neuffer, president of the Semiconductor Industry Association. Neuffer said current U.S. export restrictions on Huawei are already hurting the industry’s ability to sell to China -- which represents about 35% of U.S. semiconductor sales -- and more restrictions would further alienate Chinese customers who are weary of being added to Commerce’s Entity List. “Some of them are afraid they’re next,” Neuffer said during a Feb. 18 panel hosted by the Information Technology and Innovation Foundation.

California-based Alpha and Omega Semiconductor is being investigated by the Justice Department for export control violations relating to shipments to Huawei, the company said in a Feb. 5 press release. The company said it has been ordered by the Commerce Department to stop all shipments to Huawei and is working with the agency to “resolve this issue.” The semiconductor company has an export control compliance program in place and is committed “to comply fully” with U.S. export laws, but said it expects revenue hits due to penalties “incurred in connection with the investigation” and by the “Huawei shipment interruption.”

The Commerce Department withdrew a rule that was expected to impose controls on exports of field effect transistor technology (see 1912170031), according to the Office of Information and Regulatory Affairs within the Office of Management and Budget. The “Gate-All-Around Field Effect Transistor (GAAFET) Technology” rule, which was sent to OIRA in November and withdrawn Feb. 11, was expected to be one of six rules issued by Commerce early this year (see 1912160032) as part of the agency’s effort to control emerging technologies. Commerce has faced delays while trying to release the rules, which officials expected to be issued by now (see 2002040057). So far, Commerce has issued one rule in the vein of emerging technologies: a January interim final rule to control geospatial imagery software (see 2001030024).

As the coronavirus outbreak disrupts supply chains, U.S. agricultural exporters are unsure when normal cargo processing will resume and are concerned about penalties from ocean freight carriers, according to a Feb. 3 open letter to ocean carriers by Agriculture Transportation Coalition Executive Director Peter Friedmann.

The Commerce Department again postponed the first meeting of its Emerging Technology Technical Advisory Committee and may not reschedule it until March, a Commerce official said. The meeting, which was originally scheduled for Dec. 4, 2019,was initially postponed to January as the agency faced delays in issuing members their security clearances (see 1911200045). But the problem persisted, according to Anita Zinzuvadia, a licensing officer with the Bureau of Industry and Security, who said Commerce canceled the January meeting.

The U.S. effort to box out Huawei shows how complex and intertwined the issues are, the Asia Society Policy Institute president and a former deputy secretary of state said Jan. 28. Former Australia prime minister Kevin Rudd, now president of ASPI, said he's spoken with many people in the U.S. semiconductor industry, and they tell him that their ability to reinvest at the scale they need to remain dominant in the latest advances “hangs in part on their ability to export to China.” He asked, if the government bans those exports, will it “then step in to supplement on the order of tens of billions each year?”

The Commerce Department is close to publishing a rule that will expand its authority to block shipments of foreign made goods to Huawei, according to a Jan. 14 Reuters report. The rule would lower the U.S.-origin threshold on exports to Huawei to 10 percent, Reuters said, and expand the purview to include “non-technical goods like consumer electronics” and “non-sensitive chips.” Commerce sent the rule to the Office of Management and Budget after an interagency meeting last week, the report said. A top Commerce official recently confirmed the agency was considering a range of expanded restrictions of foreign exports to Huawei, including changes to the Direct Product Rule and a broadened de minimis level (see 1912100033).

China agreed to purchase a range of U.S. goods as part of the phase one deal signed Jan. 15, totaling about $200 billion worth of U.S. goods and services over the next two years. The deal covers a long list of agricultural products -- including pork, beef, processed meats, dairy and seafood -- along with increased Chinese imports of U.S. rice, energy products and $120 billion in purchases of U.S. manufactured goods this year.

Export Compliance Daily is providing readers with some of the top stories for Jan. 6-10 in case you missed them.