Policy Briefs

Responding to reports the company has secretly funded research at US universities through an independent foundation, new chairman of the House Select Committee on China Rep. John Moolenaar (R-Mich) is taking aim at Chinese telecoms giant Huawei. The research funding is a way for China to steal US innovations, the chairman said.  The Administration should suspend all export licenses to Huawei and consider other steps such as placing the company on the Specifically Designated National list, he stated.

The New Chairman of the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party, Rep. John Moolenaar (R-MI) promises to continue the Committee's role as a spotlight, though perhaps with less  candlepower than his predecessor, retiring Rep. Mike Gallagher (R-WI)

The European Parliament has given its final approval to a new regulation enabling the EU to prohibit the sale, import, and export of goods made using forced labour. Originally proposed in 2021, the rulemaking had been stymied by resistance from industry groups, with the final result lacking much of the efficacy of the US version, the Uyghur Forced Labor Protection Act.

U.S. Secretary of Commerce Gina M. Raimondo and Kenyan Cabinet Secretary of Information, Communication and the Digital Economy Eliud Owalo "affirmed their shared priorities for strengthening the digital economy, promoting innovation, and increasing digital trade and investment between the United States and Kenya," according to a readout from the Commerce Department, At the Wednesday meeting the principals "reaffirmed their intention to cooperate on establishing interoperable privacy regimes and facilitating trusted cross-border data flows." Later Secretary Raimondo hosted a roundtable discussion with several leading women technology leaders in Kenya to "discuss the Biden-Harris Administration’s Digital Transformation with Africa initiative"

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division announced the outlines of a voluntary self-disclosure progam in a statement Monday …

Under Secretary for Terrorism and Financial Intelligence (TFI) Brian Nelson will travel to San Juan, Puerto Rico from April 23 – 25 " to discuss "key illicit finance issues," according to a statement. Treasury has identified increased risks in Puerto Rico due to the existence of Puerto Rican financial entities, or PRFEs – chartered and licensed by territorial authorities, which present money laundering vulnerabilities because of their offshore banking business models.

A new report from the House Select Committee on China found that US financial institutions have facilitated investment of more than $6.5 billion to 63 Chinese companies that the US government has red-flagged or blacklisted for advancing Beijing’s military capabilities or supporting its human rights abuses.

The USTR has requested a Rapid Response Labor Mechanism (RRM) panel under the United States-Mexico-Canada Agreement (USMCA) to resolve a labor dispute at call center operator Atento Servicios, S.A. de C.V. .    At the conclusion of its 45-day review period, Mexico found a denial of rights had existed, but determined that Atento Servicios had taken the necessary actions to remediate the denial of rights during Mexico’s review period. The United States disagrees with this determination and is requesting establishment of an RRM panel to review the situation.

Airline industry and labor groups are calling for restrictions on Chinese Airline flights to the US, citing unfair competition. The groups have asked for a "pause" to additional passenger flights between the United States and China "until U.S. workers and businesses are guaranteed equality of access in the marketplace, free from the existing harmful anti-competitive policies of the Chinese government. "

As part of the United States and European Union Trade and Technology Council (TTC) Ministerial meeting, Ambassador Katherine Tai, United States Trade Representative, and Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade at the European Commission led the principals’ meeting of the U.S.-EU tripartite Trade and Labor Dialogue (TALD) on April 4.

The U.S. and UK Monday signed a Memorandum of Understanding (MOU) which will see them work together to develop tests for the most advanced AI models, following through on commitments made at the AI Safety Summit last November.   Signed by U.S. Commerce Secretary Gina Raimondo and UK Technology Secretary Michelle Donelan, the partnership will see both countries working to align their scientific approaches and working closely to accelerate and rapidly iterate robust suites of evaluations for AI models, systems, and agents.

The leaders of the House Select Committee on China are warning that a Chinese military company, BGI, is attempting to set up a new firm, Innomics, in Massachusetts and Kentucky, to avoid US regulatory scrutiny. In a letter to Defense Secretary Lloyd Austin, Committee Chairman Mike Gallagher (R-Wisc) and ranking Democrat Raja Krishnamoorthi (Ill) urged the Pentagon to label Chinese companies that aid the Chinese Communist Party in military biotech research as “Chinese Military Companies.”

The EU and the United States held the sixth meeting of the EU-US Trade and Technology Council (TTC) in Leuven, Belgium.  Building on prior gatherings, the ministerial continued to polish areas of common interest, while softpedaling longstanding areas of disagreement. Responding to a question about the effectiveness of the TTC, Ms. Raimondo pushed back: “Look at where the US and the EU were three years ago with respect to our collaboration on issues of technology and trade. It's it's nearly night and day."

United States Trade Representative Katherine Tai today released the 2024 National Trade Estimate Report on Foreign Trade Barriers (NTE Report), which provides a comprehensive review of significant foreign barriers to U.S. exports of goods and services, U.S. foreign direct investment, and U.S. electronic commerce in key export markets for the United States. Some controversy arose as the list of offending countries has been pared. “The NTE Report has received unprecedented attention this year because we are taking steps to return it to its stated statutory purpose," said Ambassador Tai in explaining the changes.

Speaker Mike Johnson  named Michigan representative John Molnar to take over the Chairmanship of the House Select Committee on the Chinese Communist Party being vacated by Rep. Mike Gallagher(R-WI). The Midland Michigan lawmaker can be expected to continue Mr. Gallagher's efforts to cultivate bipartisan consensus on commercial relations with our greatest adversary.

The U.S. Department of State will partner with the Government of Mexico to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022.   The initial phase includes a comprehensive assessment of Mexico’s existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs.  Key stakeholders in the Mexican ecosystem, such as state governments, educational institutions, research centers and companies will participate in this analysis in conjunction with Mexico’s Secretariat of Economy.  

For the first time in history, the Chiefs of Navy for the AUKUS countries will convene at a public forum during the Indian Ocean Defense & Security Show (IODS) in Perth, scheduled from July 24 - 26, 2024. This forum will focus on discussions regarding AUKUS Pillars 1 & 2, including but not limited to the Nuclear Submarine program. Moreover, it will serve as a platform for AUKUS experts to delve into the opportunities emerging as these nations progress.

The House passed H.R. 6602, a technical amendment to the Export Control Reform Act of 2018 sponsored by Rep. Rich McCormick (R-GA). This bill revises the interagency dispute resolution process for export license applications.

In a recent development that could strain U.S.-European Union (EU) relations further, the U.S. has cautioned the EU against reopening a World Trade Organization (WTO) case related to steel and aluminum tariffs imposed during the Trump administration. U.S. Trade Representative Katherine Tai, in closed-door remarks at a G-7 meeting last month, hinted at significant repercussions for the EU's efforts to reform a crucial aspect of multilateral trade cooperation.

As the federal government approaches the halfway point in FY 2024 without congressional budget approval, the White House has introduced the spending plan for FY 2025. The Commerce Department is asking for additional funds for Artificial Intelligence and Export Control Enforcement.

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