Washington Update

The Department of Justice on Monday released the second iteration of a proposed rule to implement an executive order aimed at preventing certain entities from accessing US persons’ data. First introduced in February, the rule would limit the transfer of sensitive US personal data to countries of concern, including China.

US Secretary of Commerce Gina Raimondo on Tuesday held a call with her Chinese counterpart, Minister of Commerce Wang Wentao, where she reiterated the United States’ “small yard, high fence policy” when it comes to regulating Chinese technology.

During Tuesday night’s vice presidential debate, Senator JD Vance (R-OH) and Minnesota Governor Tim Walz unpacked their respective economic platforms, both emphasizing the need to invest in the US economy and compete with China, but in different ways.

The Department of Commerce on Thursday issued a notice of proposed rulemaking that would prohibit the import or sale in the United States of connected vehicles (CVs) with certain software or hardware designed, manufactured, or developed in China. With most newly modeled cars incorporating some internet-connected system, this rule would effectively ban all Chinese cars from entering the US market.

The Biden administration’s announcement of a new rulemaking process to limit the ability of Chinese products under $800 to enter the United States duty-free under the de minimis provision has breathed new life into congressional deliberations on the issue.

The Biden administration announced today that it would be taking new actions to limit use of the de minimis provision, a trade rule that allows shipments under $800 to enter the United States tariff-free.

The so-called “China week,” which has been rumored since the start of the year and was previewed by Speaker Mike Johnson (R-LA) in July, is set for next week. The House website lists over 30 bills to be considered, though the situation remains fluid and bills may be dropped or added.

National Security Advisor Jake Sullivan traveled to China this week for meetings with senior Chinese officials, including President Xi Jinping and Foreign Minister Wang Yi. Xi underscored to Sullivan the importance of navigating the bilateral relationship with “solidarity and coordination” instead of “exclusion or regress” during their Thursday meeting in Beijing.

Chair of the Select Committee on the CCP John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) on Monday sent a letter to US Food and Drug Administration (FDA) Commissioner Robert Califf urging the agency to more proactively regulate US biotech activities in China.

Treasury Department officials are holding talks with their Chinese counterparts in Shanghai this week during the fifth meeting of the Financial Working Group. Treasury Assistant Secretary for International Finance Brent Neiman is leading the US delegation, with People’s Bank of China Deputy Governor Xuan Changneng leading on the Chinese side.