The Bureau of Industry and Security again renewed the temporary denial order (TDO) for three U.S. companies for their involvement in illegally exported technical drawings and blueprints to China (see 2206080068) after continuing to find evidence of additional potential export violations. The order, originally issued June 8, 2022, before being renewed in December (see 2212080007), was renewed for another 180 days on June 1, BIS said.
Exports to China
The U.S. and its allies should tighten export restrictions on artificial intelligence technologies destined to China, said Rep. Michael Waltz, R-Fla.. Waltz, speaking during a June 5 event hosted by the Atlantic Council, said America and its close trading partners need to “collaborate and innovate within a bubble that can be protected,” adding that cutting off technology trade with China will be inevitable. “I just don't see a way forward without decoupling,” he said.
Argentina and Brazil recently announced antidumping duty actions and decisions on certain products from mainland China, the Hong Kong Trade Development Council reported June 2. Argentina began an AD investigation on certain Chinese slide fasteners and strips and suspended through Sept. 28 its current AD measures on certain Chinese sodium benzoate. Brazil began an AD anti-circumvention inquiry on certain automotive safety glass and also is considering a request to apply its currently suspended AD measure on certain polyester textured yarn “not put up for retail sale." Brazil also recently rejected separate administrative challenges to its current AD measures on certain Chinese footwear and disposable syringes.
The Committee on Foreign Investment in the U.S. is open to working with lawmakers on a bill that could block China, Russia, Iran and North Korea from investing in American land or agricultural companies, said Paul Rosen, the head of CFIUS. While Rosen didn’t explicitly endorse the Promoting Agriculture Safeguards and Security Act, suggesting that CFIUS would need more resources if its jurisdiction were broadened, he said the legislation raises valid concerns.
The Commerce Department should use the Entity List and potentially its anti-boycott regulations to respond to Beijning’s restrictions on U.S. chip company Micron (see 2305220053 and 2305240002), Reps. Michael McCaul, R-Texas, and Mike Gallagher, R-Wis., said in a June 1 letter to Commerce Secretary Gina Raimondo. The lawmakers said it’s time for the U.S. and its partners to “firmly push back” on China’s “economic coercion, adding that it "can no longer sit on the sidelines as the [People’s Republic of China] selectively targets U.S. and allied entities with the goal of intimidating our businesses and harming our economic security.”
As part of the phase one trade agreement, China agreed to allow imports of chicken on a state-by-state basis after avian influenza cases, as long as 90 days had passed since the last case, and disinfection protocols had been completed.
Certain production facilities outside of China are required to complete registration under China’s new food safety measure by June 30, USDA’s Foreign Agricultural Service said in a report last week. The agency said facilities that want to “minimize potential trade disruptions” should upload “relevant information” under Decree 248, which was implemented last year to revise requirements for certain foreign export facilities and product registrations (see 2204010027 and 2304040065). Goods imported into China after June 30 from “facilities with registrations that produce certain categories of products and whose registration applications are not ‘complete’ may be at risk of not being able to clear customs,” USDA said. U.S. exporters should work with their suppliers and Chinese importers to check whether their products are “susceptible to the risks associated with the June 30 deadline.”
The Bureau of Industry and Security has seen a recent spike in completed end-use checks in China after years of dormancy, which has allowed the agency to verify controlled items went to their intended destination, said Matthew Axelrod, top export enforcement official at BIS. Axelrod, speaking during a Senate Banking Committee hearing this week, said the agency has completed more than 90 checks in the last seven months, a stark turnaround from a government in China that hadn’t “scheduled a single end-use check for us in over two years.”
The Bureau of Industry and Security doesn't have a draft rule in place to increase export licensing requirements for Huawei despite rumors this year that new restrictions for the Chinese technology company were imminent, said Thea Kendler, BIS assistant secretary for export administration. Kendler also said the agency has seen a sharp decline in China-related license applications, is spending more time reviewing those applications and is prioritizing reviews of artificial intelligence items, quantum computing technology and biotechnology for new export controls.
Lawmakers this week previewed two bills that could expand U.S. export controls, including one that could require the U.S. to impose new license requirements on certain data exports and another that would require the administration to create a tool to counter economic coercion.