The Biden administration is having “a lot” of conversations with China to try to convince the country to stop shipping certain dual-use goods to Russia, and some of those conversations appear to be working, said Jay Shambaugh, the Treasury Department’s undersecretary for international affairs. But Shambaugh also said the U.S. wants Beijing to do more, and the administration is analyzing whether its current trade and financial restrictions are strong enough.
Exports to China
Two Republicans asked the Biden administration July 11 to provide a classified briefing on Microsoft’s new partnership with Group 42 Holding Ltd. (G42), a United Arab Emirates-based artificial intelligence company with ties to China.
House Foreign Affairs Committee Chairman Michael McCaul, R-Texas, said July 11 he has told Indian leaders to stop buying new Russian military equipment or risk losing his support for U.S. arms exports to the South Asian country.
Beijing is investigating the EU for potentially adopting unfair trade practices as part of the bloc’s process for awarding projects to Chinese suppliers of wind power, photovoltaics, security equipment and electric trains destined for Europe, China’s Ministry of Commerce said July 10. The ministry plans to complete its probe by Jan. 10, although it could be extended to April 10, according to an unofficial translation. The announcement comes after the EU in April began an investigation on Chinese government subsidies awarded to suppliers of wind turbines destined for Europe (see 2404090038).
U.S. chipmaker Nvidia is investigating reports that “unauthorized parties claim to have small numbers of restricted products for sale,” a company spokesperson said in a statement late July 9. Nvidia works with its customers and the U.S. government “to ensure that all sales comply with U.S. export control rules,” the spokesperson said. The statement came after Sen. John Kennedy, R-La., said he’s concerned advanced computing chips made by Nvidia and other companies are ending up in China despite export restrictions that are supposed to prevent those shipments (see 2407090030).
Beijing renewed its antidumping duties on imports of Japanese and U.S. optical fiber preforms, saying in a July 10 notice that the imports will damage China’s domestic industry if the duties are allowed to lapse. The tariffs will remain in place for five years from July 11, according to an unofficial translation.
Nikolay Goltsev of Montreal and Brooklyn, New York, resident Salimdzhon Nasriddinov pleaded guilty July 9 to conspiracy to commit export control violations. The two men shipped electronic components to sanctioned Russian companies, some of which were then found in "seized Russian weapons platforms and signals intelligence equipment in Ukraine," according to DOJ.
Sen. John Kennedy, R-La., urged the Commerce Department July 8 to increase its efforts to stem the flow of advanced computing chips to China.
The Treasury Department is proposing to add 59 military bases across 30 states to the jurisdiction of the Committee on Foreign Investment in the U.S., a move the agency said would “vastly expand the reach” of CFIUS powers over sensitive foreign purchases of U.S. land. Treasury is also proposing to increase the scope of transactions it can examine for land purchases near eight other military bases, amend the definition of “military installation” and make other technical changes to the list of bases.
The Treasury Department’s new proposed rule restricting U.S. outbound investment is "narrowly targeted" and aims to address technology that could enhance China’s military, intelligence or cyber capabilities, Treasury Secretary Janet Yellen told a congressional panel July 9.