Biden's Commerce Nominees Advocate for Increased Export Competitiveness

The U.S. needs to boost its manufacturing capabilities, invest in innovation and improve its ability to export goods around the world, the President-elect Joe Biden’s two top Commerce Department nominees said. The nominees, Gina Raimondo as Commerce secretary and Don Graves as Commerce deputy secretary, were announced Jan. 8 by Biden, who urged the Senate to swiftly confirm their nominations.

“Given what our country has been through the last four years, the last few days, given the threats and the risks in this world, they should be confirmed as close to January 20 as possible,” Biden said during a press conference. Biden praised the work ethic of both Raimondo and Graves, calling Raimondo “one of the most effective, forward-thinking governors in the United States of America” and Graves a “longtime trusted adviser.”

Commerce has a “vision for rebuilding American manufacturing,” said Raimondo, who has been governor of Rhode Island since 2015 (see 2101070046). Graves, who comes from a “long line” of business owners, said Commerce will work to better improve the competitiveness of U.S. companies in foreign markets.

“For too many people in this country, the chance to start and grow a business and to take their idea into market and sell all over the world remains elusive,” Graves said. “We know that the government, its resources and its experienced and capable civil servants can help level the playing field.”

BSA, a trade group that represents a range of large software and technology companies, including Microsoft, Oracle and Adobe, applauded Raimondo's nomination. “We look forward to working with Governor Raimondo on vital #tech issues including data flows, [artificial intelligence], privacy and [intellectual property],” the group tweeted Jan. 8. IBM also welcomed the announcement, saying the company has previously worked “successfully” with Raimondo. “We know from experience that she is a strong, committed and creative leader,” Christopher Padilla, vice president of government and regulatory affairs at IBM and a former Commerce official, said in a Jan. 7 statement. “We look forward to working with the Secretary to drive economic recovery, expand access to opportunity, promote digital trade and strengthen US technology leadership.” The Telecommunications Industry Association said Jan. 8 it looks forward to working with both nominees on supply chain issues and “ensuring that the U.S. leads in standards innovation.”

Although the Commerce nominees did not discuss specific policy actions, the agency is expected to continue many of the same export control and Entity List restrictions introduced under the Trump administration, particularly against China (see 2011250054). Instead of expecting a “dramatic policy change” around the agency’s export controls, industry should expect more multilateral efforts and cooperation with allies, Arent Fox said Jan. 5. The law firm expects the Biden administration to specifically take a more multilateral approach toward China, including with restrictions against Huawei. “We expect the Biden Administration to continue to employ export controls as a critical part of its foreign policy and to take a firm stance against China,” the firm said.

But it also said the new administration could roll back some of Commerce’s recent measures related to the foreign direct product rule, including a May rule that further restricted Huawei’s access to foreign-made items that incorporate a certain amount of U.S. technology (see 2008170029). Arent Fox said the administration may decide the rule “has the potential to damage the US defense industrial base.”

Other China-related rules are expected to remain, the firm said, including Commerce’s April rule that expanded due diligence requirements and license restrictions for exports to military end-users and for end-uses in China, Russia and Venezuela (see 2004270027). But Commerce may “provide a greater deal of clarity regarding who is a military end-user.”

Along with the Commerce announcements, the Biden transition team also announced additions to its National Security Council, including Tarun Chhabra, senior director for technology and national security, and Peter Harrell, senior director for international economics and competitiveness. Chhabra has worked as a senior fellow at Georgetown University's Center for Security and Emerging Technology and served on the NSC staff during the Obama administration. Harrell previously worked as a trade, technology and national security expert at the Center for a New American Security, where he has advocated for multilateral export controls (see 2008140014) and has criticized the Trump administration's use of trade restrictions against China (see 2004240025). Harrell also worked as a State Department official during the Obama administration.