On January 13, 2021, U.S. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) on cotton and tomato products produced by entities operating in Xinjiang, China. The order is based on information that indicates the use of forced labor in the production of the goods. If you are sourcing these products from the Xinjiang region, you may want to consider proactive compliance steps to mitigate your risk and prevent disruption in your supply chain.  
Continue Reading CBP Stops More Imports Under Forced Labor Rules (Cotton a Jam, Part II)

One point all can likely agree on in these divisive times is that the Trump Administration’s international trade policy has been aggressive. Over the past four years, we have been clinging to our seats on the rollercoaster ride with some pretty challenging peaks and valleys:

  • Section 301 tariffs on over $370 billion worth of imports from China, under which over $68 billion in total duties have been assessed;[1]
  • Replacement of NAFTA with the United States-Mexico-Canada Agreement (USMCA);
  • Withdrawal from the Trans Pacific Partnership (TPP); and
  • Imposition of Section 232 steel and aluminum tariffs, under which over $9 billion in total duties have been assessed.[2]


Continue Reading Four Ways the Biden Presidency Could Impact Imports, Tariffs, and Trade Agreements

On September 19, 2020, China took a new strategic position in its ongoing trade confrontation with the United States. The Ministry of Commerce of the PRC (“MOFCOM”) issued Regulations on Unreliable Entity List (“UEL”) and drew wide public attention to the beginning of the PRC government’s retaliation against the Trump Administration’s recent restrictions on Chinese entities including Huawei, TikTok and WeChat. It is notable that MOFCOM deliberated with more than a year of internal discussion before implementing the UEL.
Continue Reading Certainties and Uncertainties Under China’s New Unreliable Entity List

On August 28, 2020, China took its own swing in the fight over TikTok. The blow, however, may land right in the middle of U.S.-China technology research, collaboration, and innovation. New export regulations may require licenses from the Chinese government before researchers in China may share their technological advances with colleagues, counterparts, or customers in the United States.
Continue Reading China Expands Technology Export Controls: Fighting back on TikTok and Putting Your R&D at Risk

Opening Salvos: The Proposed Tariffs

On June 26, 2020, the U.S. Trade Representative (USTR) published a notice that it is considering new tariffs on exports such as olives, coffee, beer, gin, and trucks coming into the United States from France, Germany, Spain, and the United Kingdom.[1] The list of potential targets also includes various types of bread, pastries, cakes, and other baked products. That new list of goods may face duties of up to 100%, potentially doubling the price of certain goods [2] The announcement caused European stocks to fall, particularly for shares of beverage companies, luxury goods companies, and truck makers.
Continue Reading A Trade War on Two Fronts: U.S. Considers More Tariffs on European Goods

Robotic exoskeletons may augment human strength, endurance, and mobility. The latest CFIUS action has all the makings of a Terminator movie.

This month, the Committee on Foreign Investment in the United States (“CFIUS”) pushed back on a U.S. and Chinese joint venture (“JV”) in the biotech sector. The U.S. party to the JV, Ekso Bionics Holdings, Inc., is developing exoskeleton technology for medical and industrial uses. However, CFIUS required a termination of that JV with facilities in China and investments by Chinese partners.
Continue Reading CFIUS UPDATE ISSUE — CFIUS Scrutiny in Biotech: The Ekso Case and the Eye of the Terminator

On Tuesday, May 19, the U.S. Commerce Department published a regulation (effective May 15, 2020) that prohibits sale to Huawei of a microchip made to a Huawei specification, made outside the United States with non-U.S. materials, sent from a foreign country, by a foreign person.

To quote the philosopher, hol’ up.

How is that even possible?
Continue Reading Huawei Whack-A-Mole: The U.S. Takes Another Swing at the Chinese Semiconductor Industry

“A free and open economy is the foundation of global peace and prosperity.”
– Prime Minister Shinzo Abe, G20 summit, June 2019.

On July 1, 2019, only few days after Japanese Prime Minister Shinzo Abe opened the G20 summit with a speech endorsing an open global economy, the Japanese government announced that it will impose tighter controls on technology-related exports from Japan to South Korea for reasons of national security. The controls may have a devastating effect on trade between the two countries and will create further drag on the world economy.
Continue Reading A Chinese Export License to Get a Smart Phone? Tech-Tonic Changes in World Export Controls

An updated version of this article was posted on January 16, 2020.

With round after round of tariffs on Chinese goods, announcements, removals, exclusions, delays, increases and, of course, tweets regarding all of the above, it can be easy to get lost on where, exactly, things stand with respect to Tariffs implemented under Section 301 of the Trade Act. Below we provide a brief overview and reference chart, complete with links to the relevant notices. We will update the chart as the U.S. government adds, removes, or changes the tariffs.

** Updated as of September 3, 2019 **


Continue Reading China Trade War Scorecard: Keeping Track of Tariffs

*This is an updated version of the February 21st blog post.

Key Takeaways:

Many U.S. companies continue to struggle under the burden of President Trump’s tariffs on imports from China. The President has postponed a scheduled March 2, 2019 deadline to increase the tariff rate on many Chinese products from 10 to 25 percent.

When we went to press with the first version of this article (February 21, 2019), negotiations between the United States and China had failed to reach an agreement that would prevent the tariff increase.

Now the President has decided that progress in those negotiations has been “substantial.” On that basis, he directed U.S. Trade Representative Robert Lighthizer to postpone the March 2 tariff increase until further notice.
Continue Reading Update from the Trump Trade War Front: Tariffs Will Not Increase March 2*

Key Takeaways:

  • Emerging technology sectors will soon be subject to new export controls.
  • Affected sectors include biotech, computing, artificial intelligence, positioning and navigation, data analytics, additive manufacturing, robotics, brain-machine interface, advanced materials, and surveillance.
  • New export controls on these sectors will likely require companies to obtain a license to export products to China and other destinations, and impose restrictions on sharing information with foreign nationals.
  • These sectors will also be added the list of industries subject to enhanced foreign investment scrutiny by the U.S. Committee on Foreign Investment in the United States (CFIUS).
  • The U.S. government has invited comments on the criteria to be used to establish new controls. The deadline for comments is December 19, 2018.

Export controls and other regulations often lag a step or two behind the times. That trend has accelerated with the pace of technological advancement. As a result, for many years, technical know-how in many cutting-edge technical fields has not been subject to export controls. This has meant that many commercial technical innovations could be freely exported without significant restrictions. As long as they were not designed for a military application, and no encryption technology involved, many new ideas developed in the United States were simply unaccounted for in the U.S. Export Administration Regulations (EAR).

But the U.S. Department of Commerce, Bureau of Industry and Security (BIS) is about to make up a lot of ground in a single, large leap.
Continue Reading The Little Regulation That Will Make a Big Change in How You Do Business: Department of Commerce to Establish New Export Controls on Emerging Technologies