Lawyers are continuing to see an uptick in outreaches by the Committee on Foreign Investment in the U.S. related to non-notified deals, especially if they involve Chinese investors. Carl Valenstein, a CFIUS lawyer with Morgan Lewis, said some of his clients in the life sciences sector, even though they weren’t working with critical technologies, have recently been contacted by CFIUS.
The EU and Taiwan held a trade and investment dialogue last week, which included talks about boosting cooperation in export controls, sanctions and foreign investment screening. The two sides also hope to “deepen their cooperation” in the semiconductor industry and want to improve market access for EU agricultural products in Taiwan, the EU said.
Russia will restrict exports of certain noble gases that are used to make chips, Reuters reported June 3. The restrictions will apply to neon and other gases until Dec. 31, the report said. Exports will be allowed only with special government permission. Russia said it hopes to increase its production capacity for the gases and to strengthen its position in the global chip supply chain, the report said.
The U.S. and South Korea may have to build more trust if they want to effectively coordinate on technology competition issues, experts said during a June 2 event hosted by the Center for Strategic and International Studies. Although the May meeting between President Joe Biden and South Korean President Yoon Suk Yeol was a good first step, speakers said the two sides will likely face challenges implementing some of their goals, including an improved trade and technology partnership.
The U.S. and the EU should focus export control efforts under the Trade and Technology Council (see 2205160033) around end-use and end-user controls, rather than on a technology’s “capabilities,” industry told the EU in comments released May 31. Trade groups also said the U.S. and the EU should better harmonize their restrictions around “intangible” transfers, which have been implemented differently and have caused confusion among companies.
Dutch semiconductor equipment manufacturer ASML is planning a $200 million expansion of its Connecticut chip facility, the Commerce Department said this week. The site is already the company’s largest American research, development and manufacturing facility, and the expansion is expected to help the company meet “projected demand in the years ahead,” ASML CEO Peter Wennink said. The announcement comes as Congress looks to pass the Bipartisan Innovation Act, which would include incentives and funding for the semiconductor industry.
An aggressive timeline that aims to file a conference report by June 21 for the House and Senate China packages has lobbyists speculating that none of the proposals in the trade titles will be in the final bill because the two chambers are too far apart. The two chambers have relatively similar renewals of the Generalized System of Preferences benefits program and a big difference in their renewals of the Miscellaneous Tariff Bill. Each chamber has proposals the other doesn't, such as directing the administration to reopen Section 301 exclusions (Senate only); changing antidumping and countervailing duty laws (House only); removing China's eligibility for de minimis benefits (House only); and renewing and expanding Trade Adjustment Assistance (House only).
President Joe Biden will maintain Iran’s Islamic Revolutionary Guard Corps’ designation as a foreign terrorist organization, removing the designation as a negotiating chip in a renewed nuclear deal with Iran, Politico reported May 24. The designation, which subjects the group to certain sanctions, was made as part of the Trump administration's maximum pressure campaign against Iran. Naftali Bennett, Israel’s prime minister, applauded the decision in a May 24 tweet. “I welcome the decision by the US Administration to keep Iran’s IRGC on the Foreign Terrorist Organizations list -- which is where it belongs.”
Bureau of Industry and Security Undersecretary Alan Estevez said his top long-term priority is building a new multilateral export control regime, and he urged industry to continue considering diversifying away from China and Russia. He also said BIS is working hard to control emerging and foundational technologies and welcomes more input from industry, academia and think tanks.
The U.S. and other techno-democracies should capitalize on their closely coordinated Russia sanctions work to create a new multilateral export control group, said two experts with Georgetown University’s Center for Security and Emerging Technology. A new regime, which would include a range of technology-producing nations that share democratic values, would help those countries address technology proliferation issues that existing regimes can not.