Washington spent the week evaluating the President-Elect's cabinet picks, with responses ranging from relief and appreciation to "vomit in the mouth." Senator John Thune will be the Senate Majority Leader, and while the House of Representative does not name its leader until January,, Speaker Mike Johnson is expected to retain his gavel.
Thursday the Department of Homeland Security (DHS) released the "Roles and Responsibilities Framework for Artificial Intelligence in Critical Infrastructure" , a set of recommendations aimed at the safe and secure development of AI in critical infrastructure. The Framework was developed collaboratively by entities involved in each layer of the AI supply chain, including cloud providers, AI developers, infrastructure operators, civil society, and public sector entities.
Chairman John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party has introduced the the ‘Restoring Trade Fairness Act," laying the groundwork for revoking China's Permanent Normal Trade Relations status.
In an effort to spur readiness in the west's inadequate icebreaker fleet, the polar states of Canada, the US and Finland have agreed to pool resources and expertise . The operational USCG polar fleet currently includes one heavy icebreaker commissioned in 1976 and one medium icebreaker commissioned in 2000. Russia's Atomflot operates a fleet of seven nuclear icebreakers, with a further five under construction or planned.
The Export-Import Bank of the United States (EXIM) commemorated its 90th anniversary with substantial growth, announcing $8.4 billion in authorized deals for Fiscal Year 2024, supporting "around 38,000 U.S. jobs," according to a statement. The terms of Ms. Lewis, Vice Chair Judith Pryor and Board Member Owen Herrnstadt expire January 20, 2025. These three seats, plus one vacancy must be filled by the president, with the consent of the Senate, The term of former Alabama Congressman Spencer Bachus ends in 2027.
The proposed rule aims to prevent foreign adversaries from gaining access to sensitive personal data through various commercial transactions, such as data sales, employment agreements, or investments. To enforce the new regulations, the proposed rule includes mechanisms for issuing licenses for otherwise prohibited transactions under strict conditions. It also sets up a compliance regime to ensure adherence to the rules, with provisions for recordkeeping and reporting to support DOJ investigations.
A change of regime in Washington may change the degree of sanctions pressure on Russian Arctic gas projects, though the ultimate decider remains the economics. With the White House encouraging production and exports of domestic LNG, the incentives to make it easier for the Moscow regime to sell their gas may not be that pronounced. Russia's Arctic LNG 2 project, spearheaded by Novatek, seeks to export nearly 20 million tons of liquefied natural gas annually to Europe and Asia. Strategically located on the Gydan Peninsula, it aims to leverage the Northern Sea Route to cut transit times. However, Western sanctions, particularly under the Biden administration, have constrained Russia’s ability to capitalize on its Arctic resources by limiting access to technology and financing.
Former President Donald Trump’s decisive victory in his bid to win a second term creates both uncertainty and opportunity for US trade policy, according to analysts and experts. Speculation is rampant on the outcomes for Tariffs, FTAs, Climate Policy and The WTO along with fresh scrutiny of AML/CFT regulation and Nuclear proliferation.
Major changes are likely next year when Republicans take control of the Senate, especially on the Senate Finance Committee. Sen. Mike Crapo ®-Idaho) is next in line to chair Finance, replacing current Chairman Ron Wyden (D-Ore). There will be new faces on the committee, as well, given that Republicans will gain seats. In addition, some of the panel’s senior Democrats will be missing. Sens. Debbie Stabenow (D-Mich), Tom Carper (D-Del) and Ben Cardin (D-Md) are retiring at the end of this Congress. Sen. Sherrod Brown (D-Ohio) lost his bid for reelection.
Former US Trade Representative Robert Lighthizer has been asked to return to the position in the coming Trump Administration reboot, according to reports in the Financial Times. A former attorney for domestic steelmakers, Lighthizer recently wrote in the Wall Street Journal that a return to the mercantilist policies of the 19th centrury are appropriate for today:
House Foreign Affairs Committee Chairman Michael McCaul sent a letter to Under Secretary of Commerce for Industry and Security Alan Estevez expressing his frustration regarding the Bureau of Industry and Security’s (BIS) "overall aversion to enforcing export controls against China’s semiconductor industry, including Huawei and Semiconductor Manufacturing International Corporation (SMIC)." "It is irreconcilable that only SMIC’s most advanced production line (SMIC South) has a presumption of denial licensing policy, whereas the rest of its corporate network faces little to no restrictions."
The Treasury Department on Friday issued a final rule that significantly expands the ability of the inter-agency Committee on Foreign Investment in the United States to review certain real estate transactions by foreign persons near more than 60 military bases and installations across 30 states.
In January the Defense Department released the National Defense Industrial Strategy, a first-of-its kind roadmap detailing priorities for how the department would strengthen the defense industrial base — the collection of private sector companies of all sizes responsible for building military hardware and weapons systems. This week, the department released the National Defense Industrial Strategy Implementation Plan, or NDIS-IP. The plan provides the details for how the goals set forth in the NDIS-IP can be achieved and mitigate risks to the department in the near, medium and long term.
President Biden has announced the allocation of $3 billion through the Environmental Protection Agency’s (EPA) Clean Ports program, part of the Inflation Reduction Act, to 55 projects across 27 states and territories. The Maryland Port Administration will receive $147 million in funding, aimed at both implementation and planning. "The initiative will modernize port infrastructure, foster cleaner operations, and improve working conditions, while promoting economic growth and environmental justice," according to the White House.
The Treasury announced Tuesday that the United States and Taiwan, under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO), will begin negotiations on a comprehensive agreement to address double taxation issues. The first round of negotiations is expected to take place in the coming weeks.
The Financial Action Task Force (FATF) failed to reach consensus on blacklisting Russia, with the opposition led by China, India, Saudi Arabia, and South Africa, and UN Secretary General Antonio Guterres flew to Kazan to shake hands and bow to Russian leader Vladimir Putin, sending a tacit message to petty tyrants and hedgemonists everywhee.
The Millennium Challenge Corporation (MCC) of the United States has signed a five-year Compact with the Government of the Republic of Zambia (GRZ) to promote economic growth and reduce poverty through investments in agriculture and agro-processing. The Compact, valued at $491,750,000, includes $458,000,000 from the MCC and $33,750,000 from GRZ. The program focuses on overcoming constraints to economic growth, such as poor roads, limited private capital for agricultural investment, and an uncertain policy environment.
The Administration continues its response to certain countries of concern's efforts to access Americans’ sensitive personal data and U.S. Government-related data. On October 18, 2024, the Justice Department’s National Security Division issued a Notice of Proposed Rulemaking (NPRM) to offer full draft regulations for public notice and comment.
The US-China Economic Working Group met on the sidelines of the annual meetings of the World Bank and International Monetary Fund. US and Chinese officials would be “digging in” on US concerns about Chinese production overcapacity again this week, Treasury Secretary Janet Yellen said told reporters Tuesday.. The working group has been “digging in” on the overcapacity issue to see if the two sides can come to a common understanding to address the problem, Yellen said. The U.S. side "continued to raise concerns related to China’s industrial overcapacity and its impact on U.S. workers and firms," according to the readout at the meeting's end.
The Treasury Department released final rules Thursday for the Advanced Manufacturing Production Credit, which aims to encourage US companies to onshore production of critical clean energy technologies like solar and windcomponents, batteries and energy storage and critical minerals. The final rules will expand the US clean energy manufacturing base, create good-paying jobs, strengthen thenation’s energy security and build the reliable and responsible supply chains needed to meet US climate goals, Treasury said.