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.
December 23 CFIUS notified US Steel they were unable to reach a consensus on the proposed sale to Nippon Steel and referred it to President Biden for a final decision. The President has 15 days from notification to act, meaning an announcement can be expected around Tuesday January 7th. The eminence grise in the affair, 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.
A report from the Senate’s Permanent Subcommittee on Investigations (PSI) has revealed critical failures in the United States’ semiconductor export control regime, underscoring its inability to curb the flow of critical technologies to adversaries such as China and Russia. The findings highlight significant deficiencies in the enforcement capabilities of the Department of Commerce’s Bureau of Industry and Security (BIS) and inadequate compliance efforts by U.S.-based semiconductor manufacturers, according to the authors.
With the announcement that Donald Trump has named Stephan Miran to head the Council of Economic Advisers, we reprint our discussion of the Harvard-trained economist's unconventional thinking on tariffs and currency which has won widespread acceptance among the president-elect's advisors. Rejection of the premise that tariffs are a consumption tax starts at the top, with the President Elect's "most beautiful word" musings, and the intellectual basis has been articulated in a recent paper by Stephan Miran of the Manhattan Institute and Hudson Bay Capital. What may be under appreciated is Miran's thinking on the sanctity of repaying government debt.
The United States has prevailed in its dispute under the United States-Mexico-Canada Agreement (USMCA) challenging certain Mexican biotechnology measures concerning genetically engineered (GE) corn. The USMCA panel agreed with the United States on all seven legal claims, finding that Mexico’s measures are not based on science and undermine the market access that Mexico agreed to provide in the USMCA.
Early Saturday morning, the Senate approved legislation extending governemnt funding for three months and providing disaster assistance for Appalachia and Florida.. The 85 - 11 vote in the Senate followed on a 366 - 34 approval by the House earlier in the day Friday.
Rep. Pat Fallon (R-TX) introduced a bill he intends to call “Safeguard American Innovation Act,” The legislation, introduced December 17th, prohibits the Defense Department from contracting for IT services with a company that has R&D or Data Centers in the PRC.
The Justice Department submitted to the Federal Register last week a Notice of Proposed Rulemaking (NPRM) to update and clarify regulations issued under the Foreign Agents Registration Act (FARA). FARA requires persons in the United States who are acting as agents of foreign principals and engaged in certain specified activities to make periodic public disclosures of their relationship with the foreign principal, as well as activities, receipts, and disbursements in support of those activities.
The Joint Economic Committee held a hearing titled “Trade Wars & Higher Costs: The Case Against Trump’s Tariffs.” Chaired by Rep. Don Beyer (D-VA), the session focused on President-elect Donald Trump’s proposal to impose tariffs ranging from 10% to 20% on virtually all imported goods. Witnesses warned that the tariffs would increase consumer prices, harm U.S. competitiveness, and fail to generate sufficient revenue to offset proposed tax cuts. he same day of the hearing, December 18th, the Congressional Budget Office released a report on the effects of tariffs, noting the proposed Trump tariffs would have first-order impacts on GDP and prices, in the neighborhood of 0.5 to 1 percent, although the report notes "The United States has implemented no increases in tariffs of this size in more than 50 years, so there is little relevant empirical evidence on their effects."