There isn’t a “coherent” strategy among the various bills in Congress to address international technology competition, said Jon Bateman, a technology policy expert with the Carnegie Endowment for International Peace. Bateman, speaking during a June 23 event hosted by Foreign Policy magazine, said the lack of coherence isn’t “altogether surprising, partly because the government is “classically plagued with coherence problems.”
More than 120 business executives this week urged congressional leadership to “act urgently” to pass the Bipartisan Innovation Act, which is currently in conference. The bill is “critical” to the U.S. economy and would help strengthen domestic manufacturing and supply chains, said a June 15 letter signed by the leaders of major technology firms, electronics manufacturers, semiconductor companies and others. “Our global competitors are investing in their industry, their workers, and their economies, and it is imperative that Congress act to enhance U.S. competitiveness,” the letter said. “We call on Congress to act promptly to achieve a bipartisan agreement that can be passed and signed into law.” Signers include CEOs of Adobe, Uber Technologies, Alphabet, GlobalFoundries, IBM, TSMC and Lockheed Martin.
A top official in the Office of the U.S. Trade Representative said that opposition to extending a moratorium on tariffs on sales of intangible goods has surfaced before, but that the e-commerce moratorium has been renewed at every World Trade Organization ministerial conference since 1998. "There are a few countries, despite benefiting from e-commerce and digital trade, who continue to resist an extension of the moratorium," she said, but most countries, including in the developing world, see the tariff-free status as important.
A German think tank specialist in semiconductors' value chain vulnerabilities told the U.S.-China Economic and Security Review Commission he's concerned that the policy focus on bringing more production back to either the EU or the U.S. won't achieve its aims because policymakers aren't sure what those aims are.
The U.S. should create a new multilateral export control regime to counter China’s unfair industrial policies and misuse of sensitive technologies, said Mark Dallas, an associate professor at Union College in New York and a fellow with the Council on Foreign Relations. A new regime would create a “unified, clear and multilateral voice” around export controls and would reduce “commercial tensions” between the U.S. and its allies through better information sharing and enforcement.
The World Trade Organization must renew the moratorium on customs duties on electronic transmissions (see 2205190049) at the ministerial conference in Geneva next week, said John Neuffer, CEO of the Semiconductor Industry Association. In a June 9 SIA blog post, Neuffer said the moratorium is at “serious risk” from some WTO members who are in favor of the increased tax revenue the duties could bring.
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.