Washington Update

From Saturday to Monday, a bipartisan congressional delegation led by Senate Majority Leader Chuck Schumer (D-NY) was in China for talks with Chinese government officials, as well as members of the US and Chinese business community.

This week, Senate Majority Leader Chuck Schumer (D-NY) confirmed that he will lead a bipartisan congressional delegation to China, Japan, and South Korea next week. He will be accompanied by Senate Finance Committee Ranking Member Mike Crapo (R-ID), as well as senators Bill Cassidy (R-LA), Maggie Hassan (D-NH), John Kennedy (R-LA), and Jon Ossoff (D-GA).

On Monday, the Department of Commerce’s National Institute of Standards and Technology published a final rule on the Federal Register detailing the guidelines for the proper utilization of funds under the CHIPS and Science Act of 2022 (CHIPS). According to Commerce, the final rule seeks “to prevent funding provided through the program from being used to directly or indirectly benefit foreign countries of concern.”

On Tuesday, President Joe Biden addressed the United Nations General Assembly (UNGA), covering a range of topics, including the US relationship with China. Biden emphasized that the United States seeks to “responsibly manage the competition” with China so that it does not tip into conflict.

Over the weekend, President Joe Biden engaged in high-level discussions with world leaders at the G20 summit in India. While Chinese President Xi Jinping was notably absent, Biden did meet with China’s number two leader, Premier Li Qiang, and touted the new found communication channels between his administration and Chinese leadership.

President Joe Biden is heading to New Delhi this week for the annual G20 Leaders’ Summit taking place over Saturday and Sunday. It was anticipated that the summit could provide a venue for a meeting between Biden and President Xi Jinping, but Xi is no longer expected to attend.

US Commerce Secretary Gina Raimondo held a series of meetings in China over August 28 to 30. The trip follows a series of Cabinet-level visits to China this summer, including by Treasury Secretary Janet Yellen in July.

Commerce Secretary Gina Raimondo will be in China from August 27 to 30 for a series of meetings with Chinese officials and US business leaders in Beijing and Shanghai. In anticipation of the trip, Raimondo met with China’s Ambassador to the United States Xie Feng this week, but Commerce’s press release offered little detail on what was discussed.

On Thursday, the International Trade Administration (ITA) announced preliminary anti-dumping duties of 122.5 percent on tin mill steel imported from China, 7.02 percent on imports from Germany, and 5.29 percent on imports from Canada.

On Wednesday, the Biden administration dropped its long-expected executive order (EO) on outbound investment. While the regulations will not go into effect until a public comment process is finished, the EO marks a significant change in US policy on capital flows into China, particularly US investments into three covered sectors—semiconductors, artificial intelligence, and quantum computing.