This past week, CTM reported on the following.

China recently formalized some new measures, some of which may signal a prolonged period of strategic geopolitical tension. It revised its international maritime transport rules and granted new authorities to retaliate against discriminatory measures from foreign nations, a move that comes ahead of the U.S. imposing port fees targeting China-built and China-operated ships. 

Further escalating trade frictions, China's Ministry of Commerce (MOFCOM) announced that it had launched an ex officio anti-dumping investigation on pecans from Mexico and the U.S., adding to mounting trade tensions with both countries. 

At the same time, Beijing is also taking proactive steps aimed at managing and potentially smoothing trade tensions over Electric Vehicles (EVs). MOFCOM and a number of other agencies published new rules on export license requirements for EVs, marking the latest effort to regulate its booming auto exports. The license requirement would increase government oversight of the industry and make sure all EV exports meet mandatory safety and quality marks.

Turning to the U.S., which continues to execute an aggressive program of protectionist measures, the Trump administration is imposing tariffs on various wood products for national security reasons, with Chinese production likely to feel a significant impact.

The U.S. Commerce Department’s Bureau of Industry and Security published an interim final rule that expands the application of export controls to subsidiaries of listed entities, increasing the compliance burden for companies trading with China.

The persistence of the ongoing trade and geopolitical tensions is evident in several legal challenges.

Shenzhen DJI Innovation Technology Co. (commonly known as DJI), a privately owned manufacturer of consumer and commercial drones, had brought a lawsuit against a Department of Defense (DoD) decision to designate it as a "Chinese Military Company" (CMC). In an opinion issued last week, a U.S. district court rejected DJI's claim.

A U.S. appeals court affirmed a lower court opinion that upheld actions by the Office of the United States Trade Representative (USTR) in relation to Section 301 tariffs imposed on Chinese imports during the first Trump administration.

And in Canadian/international courts, in response to an order to close its operations in Canada, Chinese tech company Hikvision, a major surveillance equipment manufacturer, has brought multiple lawsuits against the Government of Canada.