U.S policymakers should further study the extent to which U.S. investors support China’s artificial intelligence industry and should revise the scope of a Treasury Department list that restricts investments in Chinese military companies, experts from Georgetown University’s Center for Security and Emerging Technology said in a new report. The report also said the U.S. should consider imposing investment restrictions on certain companies added to the Entity List.
New U.S. chip export controls are among the most complex export regulatory provisions ever published and have caused significant uncertainty in the semiconductor industry, trade groups and technology firms told the Bureau of Industry and Security in comments that were due this week. More than 40 companies, trade associations, law firms and others asked BIS to revise parts of the regulations or offer more guidance to avoid hurting U.S. competitiveness, with some saying the new controls may force foreign companies to stop using U.S.-origin items altogether rather than deal with the added compliance obligations.
Although those on the Senate Agriculture Committee hailed the 14% surge in agricultural exports in 2022, when the value reached an all-time high of $196 billion, a half-dozen senators pressed USDA Undersecretary of Trade and Foreign Agricultural Affairs Alexis Taylor on Mexico's plan to block the import of genetically modified corn.
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The U.S. requested a second dispute panel over Canada's dairy tariff-rate-quota measures, and under USMCA, that panel will automatically be formed. The U.S. says Canada's revisions to its TRQs after it lost a case "impose new conditions effectively prohibiting retailers, food service operators, and other types of importers from utilizing TRQ allocations. Through these measures, Canada undermines the market access it agreed to provide in the USMCA."
The Bureau of Industry and Security added seven Iranian entities to the Entity List this week for their involvement in drone transfers to Russia, the agency said in a final rule. The entities are Iranian producers of unmanned aerial vehicles, top BIS export enforcement official, Matthew Axelrod, said during a Toronto conference this week, adding that Russia is using the drones to “attack civilian infrastructure” in Ukraine.
The upcoming U.S. outbound investment review tool probably won’t be used to unwind past deals, and will likely only target investments in specific, sensitive technology areas, said Laura Black, a former Treasury Department official. But she said companies still should prepare for a new outbound investment executive order and be ready for other jurisdictions to implement their own outbound investment controls, including in the EU.
Despite requests from industry, the Bureau of Industry and Security may push back on publishing a comprehensive list of advanced Chinese semiconductor fabrication facilities that are subject to the October chip controls, said Kevin Wolf, an Akin Gump lawyer and former BIS official. But the agency could meet industry halfway and publish a list similar to its military end-user list (see 2012220027), which could be a regularly updated, noncomprehensive set of facilities subject to the agency’s China chip controls.
The Bureau of Industry and Security has drafted new guidance for its October rule that expanded certain China-related chip controls (see 2210070049) and hopes to release it soon, said Thea Kendler, the agency’s assistant secretary for export administration. Kendler, speaking during a virtual conference hosted by the Massachusetts Export Center last week, also touched on the rule’s expiring temporary general license and urged industry to submit feedback on the new restrictions before the deadline this week.
The U.S. this week expanded sanctions against Wagner Group and designated people, entities and aircraft linked to the Russian private military company. The designations will "degrade the Russian Federation’s capacity to wage war against Ukraine," the Office of Foreign Assets Control said in a Jan. 26 news release, and target infrastructure that "supports battlefield operations in Ukraine," including weapons producers and administrators of Russian-occupied areas.