Representatives from manufacturing interests operating in Mexico said the COVID-19 pandemic has presented an opportunity to argue for locating more production in North America, for both reliability and speed, but there are still obstacles to making the argument for nearshoring as an answer to vulnerable supply chains. The president of the National Council of the Maquiladora and Export Manufacturing Industry and the director of global trade compliance for Illinois-headquartered manufacturer Regal Beloit spoke at the Wilson Center's "Building a Competitive U.S.-Mexico Border" conference, which was held Aug. 10 and 11.
A Cambridge University Press research paper published this month explores how the Chinese government exercises influence over Chinese firms that conduct foreign direct investment. The paper, which is behind a paywall, shows that China uses state-owned firms to pursue foreign investment and to “promote” the country’s foreign policy objectives. The U.S. has strengthened and revised its Committee on Foreign Investment in the U.S., partly to better scrutinize attempts by Chinese companies to acquire sensitive U.S. technologies through foreign direct investment (see 2001140060). More changes may be coming (see 2103030057, 2107230027 and 2103120042).
Sen. Roger Wicker, R-Miss., the top Republican on the Senate Commerce Committee, is asking the Bureau of Industry and Security for information on Huawei export licenses. Wicker said BIS recently held an “informal briefing” with Wicker’s staff in which they withheld certain licensing information “based on confidentiality concerns,” but Wicker believes the information should have been provided. “The information requested neither focused on any particular company's compliance nor could have resulted in a breach of confidentiality for a company under investigation,” the senator said in an Aug. 11 letter to BIS.
The American Association of Exporters and Importers said the country needs a properly confirmed leader at CPB, and is asking the Senate Finance Committee to take up the nomination of Chris Magnus for commissioner when the Senate returns in September. "Through the Covid pandemic and the start of the economic recovery, this critical leadership position has been left open for more than two years," the group said. AAEI said Magnus met with its CEO and board chair, and they were impressed with his experience solving complex issues.
Rep. Ron Kind, D-Wis., a senior member of the House Ways and Means Committee and an advocate for free trade, announced that he will not run for re-election. Kind has served in the House of Representatives for 26 years, representing a largely rural district in Wisconsin. "I always tried to make decisions that I thought were in the best interest of the people at home here and not for powerful special interests or the political leadership of either party," Kind said during his retirement speech. Kind was one of the founding members of the New Democrat Coalition, a centrist House group that promotes fiscal responsibility and economic growth.
The Biden administration will maintain a Trump-era policy that loosened export restrictions on certain unmanned drones, a decision that drew applause from the aerospace defense industry last year but sparked concern from some lawmakers.
Michael Brown advanced to president and CEO of Avalon Risk Management, succeeding founding partner Lisa Gelsomino in that role, the surety said Aug. 9. Brown was most recently executive vice president at the company, overseeing sales and marketing. Gelsomino plans to spend more time with her family but “will continue to serve Avalon as a Senior Advisor focusing on her continued role in the Commercial Customs Operations Advisory Committee (COAC) through various working groups,” the company said.
Much work remains to be done to create a concrete proposal on levying tariffs on imports from countries that are not as aggressive as the U.S. is about battling climate change, Senate Finance Committee Chairman Ron Wyden, D-Ore., said in a brief Capitol hallway interview Aug. 10. Such a tariff is planned as a pay-for in the upcoming spending bill for education and daycare, income support, health care, housing and environmental priorities. "People have asked, 'What is this really all about?'” he said. "We have defined this as making sure that, as our workers and our manufacturers push very hard to modernize our infrastructure, make it greener and cleaner, that other countries don't undercut our workers and manufacturers. That is the philosophical foundation."
Hong Kong Chief Executive Carrie Lam said she supports adding China’s anti-foreign sanctions law to Hong Kong’s constitution, a move that would potentially add more challenges for global companies trying to navigate U.S. sanctions compliance and China’s business environment.
The House’s top Republican on the Foreign Affairs Committee introduced a bill that would impose new sanctions and export restrictions against foreign governments and people responsible for radio-frequency attacks against U.S. personnel abroad. The Havana Syndrome Attacks Response Act, introduced Aug. 3 by Rep. Michael McCaul, R-Texas, would sanction those who the president determines “knowingly directed or carried out these attacks,” which have caused brain injuries to U.S. personnel in Cuba and other countries. The bill would also require the U.S. to restrict certain exports -- including arms sales -- and export licenses for shipments to foreign governments behind the attacks. The export controls would be applied to shipments of items controlled under the Arms Export Control Act, licenses for items on the U.S. Munitions List and other exports pursuant to the Export Control Reform Act. The bill has 15 Republican co-sponsors.