The U.S. should enter into a free trade agreement with the government of Taiwan "by the end of next year," former Secretary of Defense Mark Esper said during a July 26 Atlantic Council webinar. The former secretary, now on the board of the think tank, went on to say that not only should the U.S. pursue an agreement with Taiwan, but that America should persuade its European allies to do the same, regardless of pushback from China.
Commerce Secretary Gina Raimondo, during a July 24 interview on Face the Nation, said that although some critics of the CHIPS bill say it helps semiconductor companies expand chip production in China due to grandfather provisions, she says the guardrails are adequate.
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Two technical committees that advise the Bureau of Industry and Security plan to work together on a proposal to create a "trusted exporter" program, similar to the trusted trader program for importers. Sensors and Instrumentation Technical Advisory Committee Co-Chair Jennifer O'Bryan said during a July 26 quarterly meeting of SINTAC that the Regulations and Procedures Technical Advisory Committee wants to work on such a proposal.
The U.S. should shift away from only using export controls as a technology competition strategy against China and instead turn to domestic investment, Ling Chen, a Wilson Center China fellow, said in a July report funded by the think tank. “Weaponizing” supply chains will only “galvanize” China, the report said, causing it to “accelerate” its technological development. “The effect of the tech war may be counterproductive for the United States,” the report said.
The departments of Commerce and Defense are establishing a new forum to better study potential controls for emerging technologies, Bureau of Industry and Security Undersecretary Alan Estevez said, speaking during a July 19 House Foreign Affairs Committee hearing. He said he has asked DOD to help him stand up a “critical technologies review board” to coordinate over a range of evolving technologies, including semiconductors, biotechnology and quantum computing. “This board will help BIS to understand the technologies DOD is investing in for military use,” he said, “and to help us impose appropriate controls for those technologies.” BIS recently announced it would stop categorizing technologies as either emerging or foundational before a control is imposed, which it hopes will help the interagency process move faster (see 2206270007).
The Bureau of Industry and Security should harmonize the Entity List with other lists across various agencies to better capture foreign companies that should be subject to strict trade restrictions, lawmakers told BIS Undersecretary Alan Estevez this week. Others said BIS has failed to blacklist Chinese military companies that deserve placement on the Entity List, allowing the Chinese government to continue to buy sensitive American technologies.
The Bureau of Industry and Security is conducting a review of the types of semiconductors and chipmaking equipment that can be exported to China to determine whether it needs to tighten those restrictions, BIS Undersecretary Alan Estevez said, speaking during a Senate Banking Committee hearing last week. He said the agency is considering tightening the “cut-off point” of semiconductors that are subject to strict export licensing requirements.
A potential provision in the bipartisan China package (see 2207120049) that would create an outbound investment screening mechanism received more opposition (see 2206280051 and 2201140038) this week, including from lawmakers on the Senate Banking Committee and former U.S. investment screening officials. While opponents of the provision say some form of outbound screening may eventually be necessary to further restrict sensitive technology transfers to China, they also said the current wording is too broad and leaves too many questions unanswered.
House Majority Leader Steny Hoyer, D-Md., who is a key decisionmaker on what to bring to the House floor, rejected out of hand the Senate minority leader's proposal to bring the Senate China competition bill up for a vote, since negotiations between the House of Representatives and the Senate have stalled.