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,...
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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...
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...
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...
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...
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,...
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...
Congress may be shifting its BIA strategy in order to pass CHIPS funding before August recess. Negotiations on the more contentious provisions in the BIA have stalled in recent weeks, and Senator Mitch McConnell has threatened to hold up the package altogether if Democrats continue pursuing a separate budget reconciliation package. Read more
The version of the NDAA currently making its way through the House includes several China-related provisions that could further...
Despite reports, the Biden administration has yet to signal if or when it will lift a small subset of Section 301 tariffs on consumer goods. The decision could be accompanied by a new exclusion process and/or the announcement of a new Section 301 investigation. The decision reportedly lies with President Joe Biden himself. Read more
Negotiations on the Bipartisan Innovation Act have stalled and support for the bill is fracturing. USCBC understands that conferees are not close to...
Statements following the G7 and NATO meetings contained harsh words for China. This week’s statements suggest the Biden administration’s goal of approaching China through a united front is coming to fruition. In both statements, members vowed to work together to address the China challenge, with the G7 announcing a $600 billion infrastructure program to provide alternatives to China’s Belt and Road Initiative. Read more
Meanwhile, Commerce blacklisted 25 Chinese...
