The Treasury Department issued its final rule to modify mandatory declaration requirements for certain transactions involving critical technologies and made several revisions in response to industry comments. The changes include technical revisions and clarifications related to exemptions and the timing of determining whether a party must submit a declaration.
Sen. Marco Rubio, R-Fla., urged the Committee on Foreign Investment in the U.S. to review the potential purchase of Pennsylvania-based GNC Holdings by Harbin Pharmaceutical Group, a state-controlled Chinese pharmaceutical company. Rubio said the purchase falls within CFIUS’s purview because it involves a Chinese company acquiring sensitive data on “millions” of GNC Holdings’ customers and retail locations “on and around military installations” across the U.S.
Two Senate Foreign Relations Committee Democrats urged the Treasury Department to impose updated Russia Magnitsky Act sanctions, saying the administration failed to announce a new round of designations last year. In a Sept. 9 letter, Bob Menendez of New Jersey and Ben Cardin of Maryland said new sanctions are overdue. “[O]ur expectation has been that [the Office of Foreign Assets Control] announces annual designations by the close of each calendar year,” the senators said. “[W]e still do not have the 2019 round of Russia Magnitsky designations from the Administration. To this effect, we urge the release of a robust and credible list of designations immediately.”
China is launching a mission to set global regulations on data security as its companies increasingly face accusations of breaching foreign countries’ data privacy laws, Chinese Foreign Minister Wang Yi told the International Seminar on Global Digital Governance Sept. 8 in Beijing, according to the text his speech. Wang, speaking weeks after the U.S. announced bans on transactions with the parent companies of WeChat and TikTok (see 2008070024), said Chinese companies have been forced to unfairly adapt to foreign data regulations.
The Trump administration is considering placing export controls on China’s top chipmaker, the latest move in a campaign of restrictions aimed at Chinese technology companies. The controls would target the Semiconductor Manufacturing International Corporation by placing it on the Commerce Department’s Entity List, Reuters said in a Sept. 4 report. The effort is being spearheaded by the Defense Department, the report said, which petitioned Commerce’s End User Committee last week to add SMIC to the Entity List.
Mayur Patel, chief international trade counsel for the Senate Finance Committee since Aug. 7, replaced Nasim Fussell, who returned to the private sector as a partner at Holland and Knight. Patel, who joined the committee staff in 2019, previously worked as a lawyer at the Office of the U.S. Trade Representative from 2011 to 2018, working on World Trade Organization disputes and on the chapter language for the NAFTA renegotiation and negotiations with Europe.
The Bureau of Industry and Security scheduled a meeting of the Materials and Equipment Technical Advisory Committee for Sept. 17 at 10 a.m., it said in a notice. The Regulations and Procedures Technical Advisory Committee will meet at 10 a.m. on Sept. 15, BIS said in another notice. Both meetings are via teleconference.
The World Customs Organization issued the following releases on commercial trade and related matters:
Although foreign investors and U.S. exporters should be closely monitoring the Commerce Department’s effort to restrict foundational technologies, traders should not expect controls anytime soon, Sidley Austin said in an Aug. 27 post. The rulemaking process will likely take longer than Commerce’s emerging technology effort, the law firm said, which began with a 2018 pre-rule and has been criticized by industry for moving too slowly (see 1911070014).
The Treasury Department is seeking comments on an information collection related to foreign investment reviews by the Committee on Foreign Investment in the U.S., a notice released Aug. 28 said. The collection notes that Treasury recently introduced a new case management system to allow CFIUS filers to submit certain information online (see 2005180029). As of June 1, its use is now mandatory. Comments are due Sept. 30.