Washington Update

September 22nd, 2022
By USCBC Government Affairs 
Long Story Short

President Biden this week instructed CFIUS to focus its scrutiny on several priority areas, including transactions that might affect US innovation, cybersecurity, or sensitive data. The order does not expand CFIUS’s power but rather focuses its efforts. Read more 

After the State Department’s approval of a $1.1 billion arms package for Taiwan, China sanctioned top executives from US defense firms. It is not the first time China has used sanctions to retaliate for arms...

September 15th, 2022
By USCBC Government Affairs 
Long story short

Committees in both the Senate and the House were focused on Taiwan this week, with the Senate Foreign Relations Committee advancing a new version of the Taiwan Policy Act and the House Ways and Means Committee holding a hearing on US-Taiwan trade. Read more

The Biden administration continued its semiconductor push and launched a new initiative to shore up and protect US biotechnology capabilities. Further export controls are likely to follow on both fronts, in...

September 8th, 2022
By USCBC Government Affairs 
Long story short

Executive action on outbound investment review is expected before the end of the year. We understand that the scope of such a mechanism will be narrower than that of the NCCDA. It remains to be seen if the mechanism would be empowered to block or modify investment plans. Read more

On Tuesday, the Department of Commerce released an 18-page strategy for the CHIPS for America Fund. The plan largely reiterates high-level goals, and the administration is expected to...

September 2nd, 2022
By USCBC Government Affairs 

Last Friday, the United States and China reached a long-awaited deal to grant the PCAOB access to the auditing records of Chinese firms listed on US exchanges. The tone of the US side, however, is one of caution. SEC Chair Gary Gensler stressed that the real test of the deal’s success will come later this month during the first inspections in Hong Kong. Read more

The Biden administration officially launched the first steps of CHIPS implementation. In an executive order last week,...

August 25th, 2022
By USCBC Government Affairs 

Long story short

The United States continues to explore the creation of the Chip4 Alliance, which could further complicate tensions in the Asia-Pacific. The alliance, which has not been formally announced, is meant to coordinate semiconductor manufacturing incentives and other policies among the United States, Japan, South Korea, and Taiwan amid a growing competition with China. Read more 

On Wednesday, BIS added seven China-related entities to its export control blacklist. Six...

August 18th, 2022
By USCBC Government Affairs 
Long story short

Auditing negotiations to avoid widespread delistings of Chinese firms from US exchanges are showing little progress. Conversations between the SEC and the CSRC are growing more urgent as it becomes more likely that Congress will move up the deadline for companies to come into compliance with auditing rules by the end of this Congress. Read more

Movement on tariffs—including tariff relief and/or a new Section 301 investigation—seems to be on hold for the foreseeable...

August 11th, 2022
By USCBC Government Affairs
Long story short

The Senate Foreign Relations Committee has postponed its vote on the Taiwan Policy Act. The bill would step up defense financing for Taiwan, provide a higher status to Taiwan in official US foreign policy, and encourage the United States to sign a trade and investment agreement with Taiwan. Several lawmakers and the White House have voiced concern with the bill in its current form. Read more

While in Southeast Asia over the weekend, Secretary of State Antony Blinken...

August 4th, 2022
By USCBC Government Affairs
Long story short

The US-China relationship is very tense in the aftermath of Speaker of the House Nancy Pelosi’s visit to Taiwan. China responded with import restrictions on certain goods from Taiwan and is currently conducting military shows of force around Taiwan. The situation does not appear to be significantly impacting supply chains at the moment, but this is a developing situation. Read more

The Department of Commerce is tightening export controls on certain semiconductors to...

July 28th, 2022
By USCBC Government Affairs
Long story short

President Joe Biden and President Xi Jinping spoke for more than two hours yesterday morning. The White House readout of the call, which was meant to prevent recent tensions from boiling over, is markedly brief, mentioning that the two presidents discussed “a range of issues.” Read more

Skinny CHIPS has passed both the Senate and House and will now head to the president, who will surely sign it into law. The bill, which was trimmed significantly in recent weeks,...

July 21st, 2022
By USCBC Government Affairs 
Long story short

 

Support for the pared-back version of BIA appears filibuster-proof. The bill, informally known as “Skinny CHIPS,” no longer contains the trade title. It is expected to pass the Senate next week before moving to the House. Read more

Under Secretary of Commerce Alan Estevez testified on outbound investment and export controls last Thursday. Despite rumors that the White House may be working on a comprehensive outbound investment executive order, Estevez agreed...

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