Washington Update

Congress’s National Defense Authorization Act (NDAA) moved forward last week, with both the House and the Senate advancing, at different stages, separate versions of the annual defense bill. On Friday, the House passed its version of the bill by a narrow margin of 217-199, while the Senate Armed Services Committee approved its own version by a vote of 22-3 to advance to the Senate floor.

In an interview with TIME magazine published on Tuesday, President Joe Biden defended recently announced Section 301 tariff hikes, saying they are a necessary and proportionate response to unfair Chinese economic practices.

The Office of the US Trade Representative (USTR) announced that it would only extend existing Section 301 tariff exclusions for 352 products and 77 COVID-related medical care items until June 14. They were previously set to expire today.

On the heels of announcing tariff hikes last week, the Office of the US Trade Representative (USTR) yesterday issued a federal register notice (FRN) on its new tariff exclusions process. USTR is expected to issue another FRN soon that will decide the fate of existing exclusions, which are set to expire at the end of the month.

The Office of the United States Trade Representative (USTR) on Tuesday announced the conclusion of the Section 301 four-year review, which proposes the United States maintain all existing tariffs on Chinese goods and raise tariffs in “strategic sectors.”

Secretary of State Antony Blinken on Monday unveiled a new National Cybersecurity Strategy Implementation Plan (NCSIP) while speaking at a cybersecurity conference in San Francisco. While the strategy does not directly mention China, the blueprint is widely understood to be the administration’s response to cyber threats from both China and Russia.

On Wednesday, the Treasury Department and State Department announced nearly 300 new sanctions aimed at entities circumventing US sanctions on Russia. The sanctioned entities include several Chinese firms.

Secretary of State Antony Blinken is wrapping up his three-day visit to China, which began on Wednesday. Earlier today, Blinken met with Chinese President Xi Jinping and Foreign Minister Wang Yi in Beijing.

On Wednesday, President Joe Biden called on the Office of the United States Trade Representative (USTR) to triple the Section 301 tariff rate on Chinese steel and aluminum to 22.5 percent, up from a current average of 7.5 percent. The increased Section 301 tariffs would be added on top of an import’s regular duty rate and any existing antidumping and countervailing duties.

Treasury Secretary Janet Yellen visited China on a trip that ended Tuesday to discuss economic and national security matters with senior Chinese officials. In meetings, Yellen expressed concerns about Chinese “overcapacity” and the negative impacts on US businesses.