The Biden administration is doing too little to counter China’s material support for Russia’s war machine, the ranking member of the Senate Foreign Relations Committee said July 30.
Exports to China
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The Office of Foreign Assets Control this week sanctioned five people and seven entities across mainland China, Hong Kong and Iran for helping to provide key parts to Iran’s missile and drone programs. OFAC said they procure accelerometers, gyroscopes and other components that “serve as key inputs” for Iranian weapons programs, which that country uses to produce drones for Russia and its “proxies” in the Middle East.
Two House members introduced a bill July 25 that would require certain American public companies and investment firms to report how much business they do in China.
A U.S. District Court in Kentucky on July 24 said that the U.S. statute barring the smuggling of goods from the U.S. covers only material items and doesn't extend to emails. U.S. District Judge for Western Kentucky David Hale dismissed a charge against defense contractor Quadrant Magnetics, along with several of its employees, which said the parties smuggled goods from the U.S. by "emailing magnet schematics to Chinese manufacturers."
A new report accompanying the Senate Appropriations Committee’s FY 2025 Commerce-Justice-Science Appropriations Bill calls for the Bureau of Industry and Security to conduct several export control reviews, including one that identifies regulatory “gaps” that have allowed controlled U.S. technology, especially semiconductor technology, to flow to China without a license (see 2407260054).
Sen. John Kennedy, R-La., said last week he remains concerned by recent news reports showing China has found ways around U.S. export controls on advanced computing chips.
The World Trade Organization's Dispute Settlement Body agreed on July 26 to establish two dispute panels, at the request of South Africa, to review EU restrictions on South African citrus fruit. South Africa submitted its second request for two panels in spats on the EU restrictions, which were imposed to control the spread of the insect known as the "False Codling Moth" and fungus known as "citrus black spot."
At a field hearing in Michigan, House Select Committee on China Chairman Rep. John Moolenaar, R-Mich., and committee member Rep. Darin LaHood, R-Ill., emphasized electric vehicle battery maker Gotion's ties to suppliers that use Uyghur forced labor, and questioned why Gotion should be allowed to open factories in their states. Gotion declined to send a representative to testify, they said.
The Biden administration is making progress in its effort to persuade American allies to adopt outbound investment restrictions similar to the ones the U.S. is pursuing, a Treasury Department official said July 25.