This week, the United States and China continued to take action on commitments made during the leaders’ meeting in October.
During a Wednesday hearing on US capital flows to China, the House Foreign Affairs Committee (HFAC) outlined its favored approach to regulating outbound investment: The Preventing Adversaries from Developing Critical Capabilities Act. The bill is similar to the executive order (EO) on outbound investment that President Joe Biden signed last summer, as it takes a sectoral approach to screening outbound investment.
Nearly ten months after the Chinese government lifted its zero-Covid policies, USCBC member company representatives are resuming travel to China to visit colleagues, business partners, and government stakeholders. The resumption of business travel to China reflects a return to normal business operations in China after nearly three years of severe travel restrictions. This guide addresses common questions and concerns we receive from members who are planning travel or reviewing internal policies.
In a letter first publicly released on Monday, Chair of the Select Committee on the CCP Mike Gallagher (R-WI) and Ranking Member Raja Krishnamoorthi (D-IL) urged Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai to “utilize all existing trade authorities” to address potential actions by China that distort the market for older-generation microchips.
On December 21 of last year, China’s Ministry of Commerce (MOFCOM) and Ministry of Science and Technology (MOST) published an updated version of its Catalog of Technologies Prohibited and Restricted from Export to include new export bans and restrictions on processing technologies for producing rare earth magnets.
Last August, China’s State Council released Document No. 11, also called the 24 Measures, which outlines measures to attract and utilize foreign investment in China. Several of the measures speak to long-held concerns of the US business community, including cross-border data transfer, government procurement, and intellectual property (IP) theft.
Senate Majority Leader Chuck Schumer (D-NY) has set a goal of passing a comprehensive China bill by year’s end. Select Committee on the CCP Chairman Mike Gallagher (R-WI), has said the same, and it remains to see whether either will be able to rally enough support in their respective Houses.
Last week, the Office of the United States Trade Representative (USTR) further extended tariff exclusions for 77 COVID-19 related goods and 352 non-medical products from China until May 31, 2024. The exclusions were set to expire at the end of 2023 and cover a range of products from masks and gloves to industrial components and bicycles.
The last few months have seen multiple policy developments affecting American businesses that operate in the healthcare industry. Echoing the State Council’s 24 Measures document issued over the summer, the central government has enacted policies to improve the public procurement environment and enhance intellectual property rights protection, both of which are long-standing concerns for multinational healthcare companies.
Thank you to all who partnered on and joined our Jubilee Gala in Washington last week, as well as those who were a part of our 50th anniversary galas in Beijing and Shanghai earlier this year. I was honored to be in the company of so many members, USCBC alum, friends, China scholars, and officials from both the United States and China.
Last week, the Select Committee on the CCP approved a report that included more than 100 recommendations on trade and economic policy. If enacted, these recommendations would drastically change the US-China commercial relationship.
