The Congressional Research Service issued a report Aug. 4 on emerging military technologies, including supply chain risks faced by the U.S. and considerations for Congress. The CRS suggests the U.S. supply chain for advanced military technologies may be compromised by Chinese industrial espionage or attempts to steal intellectual property relating to hypersonics. The report also cites the National Security Commission on Artificial Intelligence finding that the U.S. “lacks domestic facilities” to produce components needed to make artificial intelligence technologies, forcing the nation to rely on “foreign fabrication and complex global supply chains for production.” The report cites experts who say technology developments are likely to “outpace” U.S regulation, adding that the U.S. should consider “broad” engagement with allies to “advance collaboration on emerging technologies, norms, and standards setting.”
Chinese and South Korean officials met in Qingdao, China, Aug. 1 to discuss trade and economic relief measures to mitigate the impact of the COVID-19 pandemic, an Aug. 5 China Ministry of Commerce news release said. China said the two countries are “well-placed to restore and promote commercial exchanges” now that each country has seen success in controlling the virus. “There’s an urgent need to explore paths to restore and develop trade,” China said.
The U.S. is unlikely to get a free trade deal done with the United Kingdom before the election., U.S. Trade Representative Robert Lighthizer said in written responses to members of Congress. A top British diplomat said in June that was his country's goal (see 2006110044). “While it is possible that an agreement between the United States and the UK could be reached in the next few months, the likelihood of that is low,” Lighthizer wrote. “I am more focused on achieving a comprehensive agreement that delivers real benefits for American workers, farmers, and businesses, rather than achieving a quick deal. That said, our teams are working at an accelerated pace, and I am in regular discussions with UK Trade Minister Elizabeth Truss. We are moving quickly and efficiently, but I will not sacrifice our ambitions for speed.”
The United Kingdom’s Office of Financial Sanctions Implementation amended an entry under its terrorism sanctions, according to an Aug. 5 notice. The change adds and deletes identifying information for Qasem Soleimani, the deceased former commander of the Iranian Revolutionary Guard Corps.
The Office of Foreign Assets Control sanctioned Zimbabwean businessman Kudakwashe Regimond Tagwirei and his company, Sakunda Holdings, for supporting Zimbabwe’s government, OFAC said Aug. 5. OFAC said Tagwirei used his relationship with government officials to secure state contracts and “receive favored access to hard currency,” earning millions of U.S. dollars.
U.S. export controls are set to become more of a factor at universities worldwide as U.S.-China technology competition accelerates, forcing academic institutions to adjust to an expanding basket of regulations and compliance standards, a Hinrich Foundation report said. Colleges, which already struggle with insufficient government export control guidance (see 2005120053), need to be prepared for increased controls on software and networks, placement of foreign universities on blacklists and bans on certain foreign funding, the report said.
China has met only 5% of its purchase commitments of U.S. energy products through the first half of 2020, falling significantly short of the $25.3 billion in commitments outlined in the phase one trade deal, Reuters reported Aug. 4. China has imported about $1.29 billion worth of U.S. energy products, including crude oil, liquefied natural gas and metallurgical coal, the report said. Trade experts have said China is unlikely to meet the deal’s commitments, partly due to worsening U.S.-China relations and the COVID-19 pandemic (see 2006100053). China said in July it still plans to fulfill the commitments despite a series of recent U.S. sanctions and export restrictions (see 2007160024).
A State Department spokesperson criticized accusations levied this week by House and Senate Democratic leaders over the administration’s 2019 emergency military sales to Gulf states, saying the agency has been transparent during a congressional probe of the sales. Reps. Carolyn Maloney, D-N.Y., Eliot Engel, D-N.Y., and Sen. Bob Menendez, D.-N.J., subpoenaed four State Department officials Aug. 3 over what they say was an improper use of emergency powers to expedite arms sales (see 2008030046), adding that the agency was “stonewalling” their investigation.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said the technical fixes to USMCA need to be done, and he hopes a technical fixes bill can pass the Senate by unanimous consent. The bill would allow refunds of merchandise processing fees in post-entry reconciliation (see 2007070056) and may also change treatment of foreign-trade zones, a change that those zones say is not a technical fix at all, but a policy change (see 2007200021).
The State Department’s Directorate of Defense Trade Controls on Aug. 3 released a congressional notification transmittal sheet, detailing proposed arms sales, license amendments and license approvals from April through June. The sheet contains more than 40 proposed exports and license amendments.