U.S. policymakers should explore new ways to restrict transfers of items and services that China may be using to advance its artificial intelligence capabilities, such as data, algorithms and human capital, the Center for a New American Security said in a report this week. Although the administration should “aggressively” restrict exports to China of advanced semiconductor equipment, the report said Washington also needs to “seek out creative tools to regulate other basic building blocks of AI.”
A former U.S. trade representative and treasury secretary this week cautioned the Biden administration as it prepares to introduce a new outbound investment screening regime, saying new authorities like these tend to expand over time and could eventually be used beyond their intended purpose.
Sen. Bob Menendez, D-N.J., last week announced his proposed amendments to the Senate’s version of the FY 2024 National Defense Authorization Act, including several trade and sanctions-related bills.
The International Longshore and Warehouse Union Canada will have a "Stop Work" meeting on July 25 to recommend the settlement terms to its members, ILWU Canada said in a statement July 21. The ILWU Canada Longshore Caucus approved the terms as originally proposed July 13 by a federal mediator, the British Columbia Maritime Employers Association (BCMEA) said in a statement (see 2307130038). The caucus had initially rejected the terms, leading to a short-lived resumption of a strike by dockworkers at Canadian West Coast ports (see 2307190031 and 2307200050).
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."
The European Council on July 20 renewed and expanded the temporary suspension of all tariffs and the entry-price system on seven agricultural products from Moldova for another year. The measures will now lapse July 24, 2024. The seven agricultural goods subject to the measures, which allow imports of the products to the EU, are plums, table grapes, apples, tomatoes, garlic, cherries and grape juice. The council's expansion of the measures also includes "more stringent reporting obligations" and says the Committee on Safeguards, rather than the Customs Code Committee, likely will be involved in implementing the safeguard mechanism.
The Biden administration will complete its review of the Section 301 tariffs "this fall," U.S. Trade Representative Katherine Tai wrote to senators, and while she did not commit to any course of action, she wrote: "As part of the 4-Year Review of the Section 301 tariffs, USTR is reviewing the effectiveness of the tariffs in achieving the objectives of the investigation, as well as the effect of the tariffs on consumers, workers, and the U.S. economy at large. As part of this review, we are considering the existing tariffs structure and how to make the tariffs more strategic in light of impacts on sectors of the U.S. economy as well [as] the goal of increasing domestic manufacturing."
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.
A former senior export control official with the Commerce Department told the House Select Committee on China that he thinks the Entity List is ineffective against China, because countries can change their names, establish partnerships, change locations, and because the Entity List is a "meat cleaver" approach, given that listed parties are subject to very strict licensing requirements.
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).