Gala 2024
USCBC Concerned Proposed US Export Control Rules Are Too Broad and Will Harm American Companies
Departing from the “small yard, high fence” framework could result in unintended commercial decoupling from China
WASHINGTON—October 11, 2024—The US-China Business Council (USCBC), a private, nonpartisan, nonprofit trade organization of more than 270 American companies that do business in China, urged the Commerce Department to take a focused approach to its proposed end-use and end-user export controls in public comments filed today.
“While we support efforts to protect US national security, we are concerned that the proposed rules will unduly restrict trade in areas with little national security risk and unilaterally disadvantage American companies’ global competitiveness, including in public health,” USCBC President Craig Allen said. “The proposed rules should be much more focused in their scope to address clear and identifiable national security and foreign policy risks and not impede the vast amount of commerce that does not implicate these concerns and helps support American jobs and stabilize the global economy.”
If implemented as written, the proposed rules will amend and create four classes of end users for which an export license is required to transact with. Unless otherwise specified by the Bureau of Industry and Security, it would be incumbent on industry to determine whether a potential customer falls into one of the covered categories, representing a paradigm shift in the way companies are expected to act as an extension of the government in international trade.
USCBC recommends limiting the new rules to firms and products formally designated as having national security and foreign policy implications on the Entity List and the Commerce Control List. Additionally, USCBC is asking for clear and consistent definitions throughout the rules to ensure they do not have adverse impacts on non-sensitive sectors such as healthcare and consumer products.
Established in 1973, USCBC represents many of the world’s most iconic brands operating in China, and for more than 50 years has advocated on behalf of its members while promoting the many benefits of commercial exchange between the United States and China.
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Editor’s Note: Below are links to the two proposed rules announced in the Federal Register that USCBC filed public comments on today:
