Among the potential candidates to head the Bureau of Industry and Security is James Mulvenon, a Chinese technology expert at the aerospace company SOS International, the Wall Street Journal reported Feb. 11. Mulvenon is expected to be considered for the undersecretary role along with Kevin Wolf (see 2102090060), an export controls lawyer and a former BIS official, and could bring a more hard-line stance on U.S. technology exports to China, the report said.
Exports to China
The Biden administration should pursue more multilateral engagement on export controls and continue to protect sensitive U.S. technologies, the American Leadership Initiative said in a Feb. 11 summary of an upcoming report. The ALI said the White House should establish an Office of Global Digital Policy, which would dedicate resources toward federal investment in research and development, promote exports and “protect key technologies.” The office, along with a “multipronged series of investment and export controls,” will help U.S. companies better compete with Chinese technology firms that benefit from government subsidies, the ALI said.
The Biden administration is looking to place new export controls on sensitive technologies destined for China, according to a Feb. 10 Reuters report, continuing a trend of technology controls begun under the Trump administration. But the U.S. hopes to better coordinate with allies on those controls instead of imposing unilateral restrictions that may damage the competitiveness of U.S. companies, the report said. A senior administration official told Reuters the U.S. is still reviewing Trump-era policies toward China and there may be areas of “continuity” on certain issues. “One of them is to ensure that we are not supplying highly sensitive technology that can advance China’s military capabilities. We will be bearing down on that,” the official said. The White House didn’t comment.
While the World Trade Organization faces multiple crises, including COVID-19 vaccine export control threats and massive trade wars, the institution's Deputy Director-General Alan Wolff delivered a 10-item agenda for moving forward. Speaking Feb. 9 at a Washington International Trade Association conference, Wolff said the WTO will be judged by “how well it deals with the crises of our time,” saying it must “demonstrate soon and visibly that it can deliver on subjects relevant to all those who engage in international trade or are affected by it ... pretty much everyone.”
Ambassadors from the United Kingdom, Brazil, the European Union and Australia discussed on a Feb. 8 panel how to improve trading relationships with the U.S. and deal with the challenge China poses to the international trading system but had no insights into how to make breakthroughs on either.
A panel of scholars and a former general consul in Hong Kong agreed that the Biden administration is likely to place more emphasis on export controls and industrial policy to support domestic semiconductor production, and less on the trade deficit and tariffs, even as the new president has to decide what to do about Section 301 tariffs at some point. They were speaking on a virtual panel about U.S.-China relations hosted by the Washington International Trade Association on Feb. 8.
Export Compliance Daily is providing readers with the top stories for Jan. 25-29 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
Three Republican senators asked President Joe Biden’s commerce secretary nominee to clarify whether she would consider removing Huawei from the Entity List, saying such a move would hurt U.S. competitiveness. Sens. Marco Rubio of Florida, Tom Cotton of Arkansas and Ben Sasse of Nebraska said they were concerned when Gina Raimondo declined to tell lawmakers last month whether she would remove export restrictions from Huawei or other Chinese companies (see 2101260047). They also said they will oppose the confirmation of other Biden nominees if they do not outline a clearer, tougher stance on Huawei and other Chinese companies.
The Bureau of Industry and Security fined a Singapore-based electronics and software distributor more than $3 million and suspended its export privileges for violating the Export Administration Regulations, which included illegal exports to China and Iran, according to a Jan. 29 order. BIS said Avnet Asia Pte., Ltd. committed 53 EAR violations over several years when it sold export-controlled electronic components totaling more than $1 million. The Justice Department also charged Chinese national Cheng Bo, a former Avnet Asia employee, for participating in a conspiracy to violate U.S. export laws.
Economics Professor Mary Lovely, who studies multinationals' operations in China, told the U.S.-China Economic and Security Review Commission that the trade war didn't make the U.S. less reliant on China, and that export controls designed to isolate China have not been effective, either. She noted that China is still the top exporter to the U.S., and their goods make up 17% of U.S. imports. The Commission met online Jan. 28.