Huawei received approval to build a $1.2 billion manufacturing and research facility in the United Kingdom, where it will focus on developing technology used in fiber optic communication systems, the company said June 25. Huawei said the plant, which will be located in Cambridge, will be “state-of-the-art” and bring “technology to data centers and network infrastructure around the world.”
China will eliminate tariffs on 97% of taxable imports from Bangladesh, a June 26 Hong Kong Trade Development Council report said. The measure, to take effect July 1, will eliminate tariffs on more than 8,000 items, the report said, and is part of China’s commitment “to the least developed countries with whom it has established diplomatic ties.”
The U.S. is considering providing relief to U.S. lobster exporters hit by Chinese retaliatory tariffs and will more closely examine whether China is meeting its seafood purchase commitments under the phase one trade deal. The White House said June 24 it may provide aid to the seafood industry for China’s “unjust retaliatory tariffs,” and President Donald Trump directed the Office of the U.S. Trade Representative to submit monthly reports on Chinese seafood purchases and the value of lobster exports to China.
A bipartisan group of senators unveiled a bill June 24 that would provide billions of dollars of federal funding for semiconductor research and manufacturing. The American Foundries Act, which is expected to be formally introduced June 29, according to a June 25 Reuters report, comes amid a strong bipartisan push (see 2006110038) for funding of U.S. technology innovation to counter China's influence in the sector.
The United Nations Security Council on June 25 renewed sanctions against the Democratic Republic of the Congo for one year. Among other measures, the sanctions restrict the sale of arms and other “related material and assistance” to nongovernmental entities and individuals in the country. The measures are renewed until July 1, 2021.
Sen. Tom Cotton, R-Ark., and Rep. Mike Gallagher, R-Wis., asked the Trump administration to sanction 20 Chinese companies after they were identified last week by the Defense Department as having ties to the Chinese military (see 2006250024). The lawmakers said they hope the administration releases the names of more companies, and called on President Donald Trump to “impose economic penalties.” The lawmakers said the list “is one piece of a broader campaign our nation must wage against the Chinese Communist Party and its parasitic technology transfer efforts.”
It's unclear how a President Joe Biden would try to use policy to shape the global supply chain, but the Atlantic Council's Asia Security director said that since Biden prefers a multilateral approach, he “might be less likely” to impose tariffs or export controls. Miyeon Oh, who was speaking during an Atlantic Council webinar June 26, said he might try to get allies to coordinate an effort “to rebalance the global supply chain,” and he might seek to use American participation in the Trans-Pacific Partnership as a way to do so.
The Office of Foreign Assets Control likely did not understand the industry burdens imposed by the update to its reporting, procedures and penalties regulations (see 1906200036) and will probably narrow their scope, said Jason Rhoades, a KPMG sanctions lawyer and former OFAC compliance officer. The regulations, which were updated last year, expanded the scope of transactions that must be reported to OFAC, including for non-financial institutions. The update was met with widespread criticism from industry, which called them confusing, unclear and overly burdensome (see 1907290015 and 1907230054). OFAC issued a set of frequently asked questions in February to try to clarify the new requirements (see 2002200057).
Amazon set up a new Counterfeit Crimes Unit meant to reduce the number of fake products sold on the platform, the company said in a June 24 news release. “The Counterfeit Crimes Unit enables Amazon to more effectively pursue civil litigation against suspected criminals, work with brands in joint or independent investigations, and aid law enforcement officials worldwide in criminal actions against counterfeiters. Amazon welcomes the partnership of brands and law enforcement in the shared objective of stopping counterfeiters and holding them accountable,” it said. Amazon said the “global team” is “made up of former federal prosecutors, experienced investigators, and data analysts.” The availability of counterfeits on e-commerce platforms is facing scrutiny from the Trump administration (see 2004290052) and lawmakers (see 2003040040).
The Andean Community recently delayed the effective date for updated import requirements for cosmetic products to March 1, 2021, a June 24 Hong Kong Trade Development Council report said. The measures, which were scheduled to take effect May 27, will harmonize regional requirements for cosmetic products throughout the Andean Community’s free trade area, including for production, importation, storage and quality control, the report said. The Andean Community includes Bolivia, Colombia, Ecuador and Peru, with neighboring countries as associate members.