Policy Briefs

Rep. Gregory W. Meeks, Ranking Member of the House Foreign Affairs Committee, reintroduced two pivotal pieces of legislation aimed at reinforcing sanctions against Russian aggression and U.S. support for Ukraine's sovereignty and safety.   The "Sanction Russian Nuclear Safety Violators Act of 2025" (H.R. 475) would:  Target individuals and entities who endanger the Zaporizhzhia Nuclear Power Plant, Europe's largest nuclear facility. Russian forces have occupied the site since 2022, raising grave concerns about the plant's stability and Rosatom's involvement. The January 15 sanctions package announced by OFAC included these measures. The "No Russian Tunnel to Crimea Act" (H.R. 476) would impose sanctions on any foreign actor who knowingly supports the construction, maintenance, or repair of tunnels or bridges connecting the Russian mainland to Crimea.

In a unanimous ruling, the U.S. Supreme Court Friday upheld a law requiring ByteDance, TikTok’s Chinese parent company, to sell the app by January 19, 2025, citing national security concerns over data collection and links to China. If ByteDance fails to divest, service providers like Apple and Google must block TikTok updates, effectively disabling the app. TikTok currently has 170 million U.S. users, with a sale potentially valued at $40–$50 billion, according to CFRA Research.

It looks as though President Trump's Cabinet will be confirmed as nominated, with the exception of course of Florida Congressman Matt Gaetz, currently the subject of disciplinary proceedings by the Florida Bar. Pam Bondi, Howard Lutnick and Scott Bessent appear to be tracking to confirmation, although Lutnick's confirmation paperwork is reportedly incomplete, creating a delay. During his Senate confirmation hearing, Sen. Marco Rubio, the President's nominee for Secretary of State, called for the continuation and potential expansion of sanctions, particularly targeting the energy sector, to pressure Moscow over its activities in Ukraine.

In cooperation with the Vatican, the Biden Administration made several meaningful diplomatic concessions in a negotiation for the release of political prisoners by the Havana regime. "We are taking several steps to support the Cuban people as part of an understanding with the Catholic Church under the leadership of Pope Francis and improve the livelihood of Cubans," said Press Secretary Karine Jean-Pierre. Cuba has announced that it will release from prison 553 people “convicted of various crimes.

The U.S. Trade Representative has issued findings in the Section 301 investigation of the People’s Republic of China’s (PRC) targeting the maritime, logistics, and shipbuilding sectors for dominance, concluding that the PRC’s targeted dominance in these sectors is unreasonable and burdens or restricts U.S. commerce, and is therefore “actionable” under Section 301. As the petitioner U.S. unions have highlighted, the entrenchment of the PRC’s dominance means that U.S. international trade is “carried out on vessels made in China, financed by state-owned Chinese institutions, owned by Chinese shipping companies, and reliant on a global maritime and logistics infrastructure increasingly dominated by China.”

CBP proposes to make merchandise that is subject to specified trade or national security actions (Section 301, Section 232, or Section 201 trade measures) ineligible for the $800 de minimis administrative exemption.   They propose to require that certain shipments claiming this exemption provide the 10-digit Harmonized Tariff Schedule of the United States (HTSUS) classification of the merchandise.

Legislation to prohibit companies affiliated with the Chinese Communist Party from qualifying for green energy production tax credits implemented by the Biden administration through the Inflation Reduction Act has been reintroduced in the 119th Congress. If signed into law, the bill would prevent any company based in China, Russia, Iran or North Korea, and the subsidiaries of those companies from benefiting from these tax credits.

Alan Estevez, Undersecretary of Commerce for Industry and Security, delivered remarks Tuesday at Washington's CSIS Wadhwani AI Center, focusing on the evolving role of export controls in safeguarding U.S. national security and addressing technological threats. The conversation, moderated by Greg Allen, Director of CSIS's Wadhwani AI Center, covered key achievements, challenges, and future priorities for the Bureau of Industry and Security (BIS).

The Center for a New American Security (CNAS) released a new report, Biopower: Securing American Leadership in Biotechnology by Vivek Chilukuri and Hannah Kelley . The report identifies key …

The Bureau of Industry and Security (BIS) issued a final rule prohibiting transactions involving the sale or import of connected vehicles or components integrating specific hardware and software linked to the PRC or Russia. The final rule bans the import of VCS hardware or connected vehicles containing such hardware, as well as the import and sale of vehicles with VCS or ADS software linked to the PRC or Russia. VCS encompasses systems enabling external communication, such as telematics, Bluetooth, cellular, satellite, and Wi-Fi modules. ADS refers to components enabling highly autonomous vehicle operation without a driver. The rule also prohibits manufacturers with a sufficient nexus to the PRC or Russia from selling new connected vehicles that incorporate VCS hardware or software or ADS software in the United States, even if the vehicle was made in the United States.    

The Biden Administration released its proposed  "AI Diffusion Rule" Monday morning, aiming to control exports of chips used for artificial intelligence.  Quotas will restrict the number of chips to be exported to about 120 countries, while a short list of G-7 and other allied countries are exempt from restrictions.    Sales to China, Iran, Russia & North Korea are blocked. The limits focus on Advanced Graphics Processing Units (GPUs) used to train AI models.   Cloud services providers like AWS and Microsoft will enjoy some waivers from the rules, in a material concession to the data center industry.  Cloud providers will have geographic limits, ensuring no more than half their computing power resides offshore.

January 8th,  the USTR released the findings of its 2024 Review of Notorious Markets for Counterfeiting and Piracy (the Notorious Markets List).  The Notorious Markets List highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy. This year’s Notorious Markets List’s issue focus section examines illicit online pharmacies and counterfeit medicines.  The issue focus describes the growth in illicit online pharmacies and the dangers of counterfeit medicines, including the health and safety risks.  USTR calls on trading partners to improve on criminal and border enforcement against counterfeit goods, particularly counterfeit medicines.  

Beneath the surface of outlandish claims on allied sovereignty, the incoming administration appears to be hashing out a strategy to kick off President Trump's second term with some big, beautiful tariffs. Facing the prospect of another ineffectual Congress, Team Trump is exploring tools that permit unilateral executive action on tariffs and trade.   The transition team has reportedly drafted executive orders that give Trump wide-ranging authority, including Section 301, Section 338 and Section 122 authorities, as well as the powers available under the International Economic Emergency Powers Act.

University of Michigan has announced it is ending its joint institute with Shanghai Jiao Tong University (SJTU).   In a letter, Santa Ono, president of the University of Michigan, said following a thorough review the university has initiated the six-month process to “officially end the partnership” with Shanghai Jiao Tong University in the Chinese metropolis of Shanghai.   Ono said the university, while valuing academic international partnerships, takes “matters of national security very seriously” and will better vet visa requirements for international students.

The Board of Directors at the Export-Import Bank of the United States (EXIM) approved a nearly $23.5 million loan to the Tennessee plant of an Australian powdered metals firm as part of the bank's Make More in America initiative (MMIA). The direct loan will be used to finance the purchase and installation of industrial metals processing equipment to further expand a McDonald, TN-based critical minerals and refractory alloy processing facility owned by Amaero Advanced Materials & Manufacturing.  

Casting aside any vestige of the customary bipartisan comity of the House Foreign Affairs Committee, newly appointed Chairman Brian Mast (R-FL)  announced the committee’s leadership for the 119th Congress, and fired an opening salvo at the Department of State.   “America is being tested like never before and Republicans on this committee are ready to meet the moment. We will stand strong and united as we get to work to carry out our clear mandate to fix the State Department and ensure every dollar and every diplomat we authorize puts America First,” stated the Fort Pierce lawmaker.

The Department of Defense has released an update to the names of "Chinese military companies" operating directly or indirectly in the United States. While not directly impacting the firm's business prospects, the designation fogs the optics of some large partnerships between American manufacturers and their Chinese business partners.

The U.S. Department of Commerce announced the award of $285 million to the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) to establish and operate a CHIPS Manufacturing USA institute headquartered in Durham, North Carolina. This initiative, known as SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA), aims to advance semiconductor design, manufacturing, and packaging technologies using digital twin technology.

In an affront to our most important Asian ally and the largest foreign investor in the US, President Biden blocked Nippon Steel’s acquisition of U.S. Steel. Opponents of the deal argued that Nippon Steel would sacrifice integrated steelmaking capacity in favor of cheaper mills in Asia and the American South.  United Steelworkers union leadership has opposed the sale, although many in the rank and file support it, arguing that they do not see how US Steel will be able to continue operations without major investment. Cleveland Cliffs CEO Lourenco Goncalves has conducted a stunningly effective public campaign to keep a deep pocketed acquirer from purchasing the rival integrated steelmaker.  Cliff's own offer was spurned by the board on financial and execution concerns.

Friday 27 December, The Justice Department issued a Final Rule implementing Executive Order (E.O.) 14117, aimed at protecting Americans’ sensitive personal data and U.S. Government-related data from access and exploitation by countries of concern. The rule establishes regulations to address national security risks posed by malicious foreign actors using bulk sensitive data for espionage, coercion, or enhancing artificial intelligence for malign purposes.

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