The U.S. “should move more quickly” to establish a new multilateral export control forum to restrict high tech exports to China now that the Wassenaar Arrangement has become less effective, said William Reinsch, a former Commerce Department official and current Scholl Chair in International Business at the Center for Strategic and International Studies. Reinsch said “multilateralism is the only viable approach to high-tech export controls,” adding that “existing structures are not adequate to the task” and must be replaced by other means for the U.S. and its trading partners to coordinate.
Exports to China
A spokesperson for China's Ministry of Commerce said China is "deeply dissatisfied" with Japan's export restrictions on semiconductors (see 2303310031), which took effect July 23 "[d]espite China's serious concerns." The spokesperson said during a press conference this week that the country has made "serious démarches to Japan at various levels." Imposing trade restrictions "to push for decoupling and disrupt" high-tech supply chains is "wrong and against the law of the market economy, the principle of free trade and international economic and trade rules," the spokesperson said. China wants Japan to keep its larger trading relationship in mind and "not to abuse export controls," the spokesperson said.
China and Nicaragua completed free trade negotiations July 25, China's Ministry of Commerce announced, according to an unofficial translation. Both sides agreed to "sign and implement the agreement as soon as possible," the release said. The ministry noted the deal will provide guarantees for economic and trade exchanges and "further improve the level of bilateral economic and trade cooperation."
The Committee on Foreign Investment in the U.S. is investigating whether TuSimple Holdings is complying with a national security agreement between CFIUS and the U.S.-based self-driving truck and autonomous freight shipping technology company, TuSimple said. The company said it’s “cooperating with the inquiry,” which is examining “information shared by TuSimple U.S.” with its China-based businesses: Hydron and Hydron’s partners.
The House Select Committee on China's chairman and ranking member acknowledged that momentum for legislation on TikTok has dissipated, but Chairman Mike Gallagher, R-Wis., said that behind the scenes he and others are working on "compromise language that will avoid some of the pitfalls of the Senate's approach, which a lot of people on my side felt was too broad ... which still does what we want it to do, which is ban [TikTok] or force a sale."
A Senate bill with bipartisan support could continue U.S. sanctions on Iran’s missile and drone program after the potential October sunset of U.N. Security Council restrictions against that country. The Making Iran Sanctions Stick in Lieu of Expiration of Sanctions Act, introduced by Sens. Bob Menendez, D-N.J., and Bill Hagerty, R-Tenn., would ensure that Iran’s missile development activities remain subject to “appropriate U.S. sanctions in the likely event that Russia and China block an extension of UN restrictions in the Security Council” later this year.
The Senate last week approved an amendment to its version of the FY 2024 National Defense Authorization Act that would restrict certain U.S. petroleum exports from being shipped to certain foreign “adversaries.” The amendment, which was approved 85-12, would specifically prohibit U.S. Strategic Petroleum Reserve sales to any entity “under the ownership or control” of the Chinese, Russian, North Korean or Iranian governments, with certain exceptions for national security reasons.
China imposed quarantine and sanitation requirements on imports of Mongolian sheep and goats, the General Administration of Customs announced, according to an unofficial translation. The restrictions cover sheep and goats that have been slaughtered within 14 days of entering China and are not for breeding purposes.
The House Select Committee on China this week sent letters to four U.S. venture capital firms about their investments in Chinese artificial intelligence and semiconductor companies, saying those investments may be helping Beijing “perpetrate human rights abuses and enhance its military capabilities.” The letters, sent to GGV Capital, GSR Ventures, Qualcomm Ventures and Walden International, also seek information about any of their potential investments in China’s quantum industry, how the companies decide which Chinese firms to invest in, how they respond if a company they invest in is added to the Commerce Department’s Entity List and more.
Republicans on the House Select Committee on China urged U.S. officials this week to cut off a broader range of exports to China, arguing that trade with China is helping to fund Beijing’s efforts to undermine American national security. Committee chair Mike Galagher, R-Wis., specifically asked witnesses from the Commerce, State and Defense Departments to enact a technology export ban on Huawei that the administration has reportedly been considering for the last year (see 2301310009).