The U.K. Parliament's Foreign Affairs Committee released a report June 30 critical of Britain's role in the global financial system as a "hub for illicit finance," particularly in light of the war in Ukraine. Russian assets are continuously laundered through the U.K. to finance President Vladimir Putin's war, the committee said. London's standing as a magnet for global finance presents a grave national security risk, the committee said. The report assesses "consequences of the complacency of successive Governments towards illicit finance and the adequacy of the current Government's response."
The U.S. didn’t do enough to penalize the Chinese companies accused by the Commerce Department this week of helping Russia evade export controls (see 2206280056), the top Republican on the House Foreign Affairs Committee said. Rep. Michael McCaul, R-Texas, said the U.S should also have placed financial sanctions on the companies, adding that State Department Deputy Secretary Wendy Sherman told the committee in April that China would face “consequences” if its companies provided support to Russia.
Global supply chain issues could be alleviated with better data sharing and processing, experts said during a June 29 meeting of the Advisory Committee on Supply Chain Competitiveness. But to overcome trust issues among companies reluctant to share data, some government intervention may be necessary, they said.
As senators who support subsidies to build semiconductor chips in the U.S. continue to say the trade title differences are holding up the bill, and that it should drop out, House negotiators say it's not time to give up yet.
A bipartisan group of senators last week introduced a bill that could place new controls on certain exports of U.S. personal data to foreign companies and governments. The Protecting Americans’ Data From Foreign Surveillance Act would require the Commerce Department, along with other agencies, to identify “categories of personal data” that could harm U.S. national security if they were exported, and to place export restrictions on those items.
Rep. Dan Kildee, D-Mich., a member of the conference committee for the China package, said he has not talked to Sen. Chris Coons, D-Del, about his new bill to pair trade adjustment assistance renewal and a limited trade promotion authority for a free trade agreement with the United Kingdom. But, Kildee said, "I think trade adjustment is so important, I'm willing to put it on any train that will leave the station and reach Biden's desk." Kildee added that he would be cautious about agreeing to take TAA out of the China package. "But I would have to have a lot of certainty that this was not an off ramp, but an on ramp," he said.
Congress should ensure existing and new trade agreements promote “responsible” collaboration in emerging technologies, including through targeted export controls, said Charles Robinson, an IBM quantum computing executive. In June 22 testimony to the Cybersecurity, Infrastructure Protection, and Innovation Subcommittee of the House Homeland Security Committee, Robinson said lawmakers should “support the tailoring of export controls” to keep sensitive technologies “out of the hands of nefarious actors.” He specifically mentioned quantum technologies, which are particularly sensitive and “present possible dual-use concerns.” Industry groups and companies have urged Commerce to avoid broad, unilateral controls on quantum technologies and other emerging technologies, which they say could stifle U.S. competitiveness and innovation (see 2204140033, 2205100022 and 2202180013).
There isn’t a “coherent” strategy among the various bills in Congress to address international technology competition, said Jon Bateman, a technology policy expert with the Carnegie Endowment for International Peace. Bateman, speaking during a June 23 event hosted by Foreign Policy magazine, said the lack of coherence isn’t “altogether surprising, partly because the government is “classically plagued with coherence problems.”
The U.K. and Thailand held the first Joint Economic and Trade Committee (JETCO) meeting June 21, the U.K. Department for International Trade announced June 21. U.K. Trade Policy Minister Penny Mordaunt and Thai Commerce Minister Jurin Laksanawisit held talks on how to boost bilateral trade, agreeing to a work program that includes government-to-government and government-to-business activity over the next 12-18 months, the DIT said. The ministers also agreed to build an "Enhanced Trade Partnership" that could pave the way for a future free trade agreement. Areas covered by the JETCO include private sector outcomes, digital, agriculture, food and drink, healthcare, financial services, trade promotion and the bilateral economic relationship.
Sen. Rob Portman, R-Ohio, in a bid to break the impasse in negotiations around the trade title in the China package, introduced a bill that would renew trade adjustment assistance and pass a limited trade promotion authority that could only be used for a free trade agreement with the U.K.