US-China Business Council President Says Export Controls, Sanctions Likely to Multiply
U.S.-China Business Council President Craig Allen, former deputy assistant secretary for China in the State Department, said that the Chinese were taken by surprise by how little has changed in the new administration. “There was an expectation between [Donald] Trump and [Joe] Biden, there would be a loosening of technology regulations,” he said, but Commerce Secretary Gina Raimondo has taken steps to tighten export restrictions that affect Huawei, and there have been actions under the new Information, Communications and Telecommunications Services (ICTS) regulations.
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“When I look at the 2022 [Commerce] budget submissions I see a lot for enforcement,” he said, and not much for export promotion. A recent budget summary from the Biden administration mentioned funding for additional staff to work on export controls and entity list proposals (see 2104090022).
“When I talk to the White House or State or Commerce or USTR about our many issues, I am told U.S.-China policy is under review, and all options are on the table,” he said during a webinar April 14 hosted by the National Customs Brokers and Forwarders Association of America. “I’m not sure when this review will be complete. I do think what we have seen thus far is indicative at least to me that there won’t be a lot of change.”
He added, “Looking at this from Joe Biden's perspective, he needs to maintain a Democratic Congress in 2022, and he doesn’t want the Republicans to criticize him for being too nice to China.” Allen said he has asked administration officials what their game plan is for high technology exports, whether affected by dual use, military user exports, or export controls. “I can’t get an answer from them,” he said. But from his group's perspective, the cascade of sanctions and export controls “very much impede trade.”