The U.S. is trying to convince more of its allies to increase export controls on advanced semiconductors and chip making equipment destined to China, but some haven’t committed, in part because they’re worried about possible trade retaliation from Beijing, said Alan Estevez, undersecretary of the Bureau of Industry and Security.
Exports to China
The Federal Maritime Commission announced this week that it’s adding China-based Anji Shipping Co. to its Controlled Carrier List, a list of carriers subject to increased FMC regulations because they are directly or indirectly owned by foreign governments. The FMC said Anji will be subject to certain controlled carrier regulations, including rate review standards to ensure that it doesn't unfairly use its government-supported position against competitors.
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China recently updated the list of products whose foreign production facilities are required to register under Decree 248, the USDA Foreign Agricultural Service said in a report this month. China removed from the list 13 products and added 60 products, with changes affecting certain aquatic products; edible vegetable oils; frozen, dried and canned fruits; candied fruits; fresh and dehydrated vegetables; grain products, milk products, nuts and seeds; and more. It said, "Some of the updates are not complete removals of the products but additions of the same products with different Customs, Inspection, and Quarantine (CIQ) codes."
If NATO considers adding Ukraine to the alliance, it should require the country to limit potential investment from China to address security concerns, according to a new report by Sen. Jim Risch, R-Idaho, the ranking member of the Senate Foreign Relations Committee.
The U.S. District Court for the Western District of Kentucky on July 9 denied a U.S. defense manufacturer's motion to dismiss allegations that it criminally smuggled weapons by selling drawings of a rare earth permanent magnet used in F/A-18 Super Hornets to China (U.S. v. Quadrant Magnetics, LLC, W.D. Ky. # 3:22-CR-88-DJH).
Chinese and South Korean officials last week held their first meeting of a new export control dialogue forum in Beijing, where they “exchanged in-depth views on relevant export control issues,” China’s Ministry of Commerce said in a news release, according to an unofficial translation. The two sides also agreed to continue “close communication, create good conditions for the normal development of bilateral trade, and work together” to maintain the “smooth flow” of supply chains. The meeting was held about two weeks after the U.S. and South Korea discussed export controls as part of the second meeting of the U.S.-Korea Supply Chain and Commercial Dialogue Ministerial (see 2406280026).
China’s Ministry of Foreign Affairs said it opposes legislation planned by House Speaker Mike Johnson, R-La., that could lead to new sanctions on Chinese military firms.
China last week announced sanctions against six American defense companies and their senior executives for arms sales to Taiwan. The measures, taken under China’s anti-foreign sanctions law (see 2309270039 and 2310230032), target Anduril Industries, Maritime Tactical Systems, Pacific Rim Defense, AEVEX Aerospace, LKD Aerospace and Summit Technologies, according to an unofficial translation of a July 12 notice from the country’s Ministry of Foreign Affairs. The ministry said the sanctions freeze those companies’ assets in China, and Chinese companies will be barred from doing certain business with their executives. Spokespeople for the six companies didn’t respond to a request for comment.
The House Appropriations Committee has included several export control provisions in a new report accompanying its version of the FY 2025 Commerce-Justice-Science Appropriations Bill.