This past week, CTM reported on a number of developments related to Chinese export controls.
On October 9, the Ministry of Commerce (MOFCOM) expanded its export control list by adding the following items:
- Five new rare earth elements
- Rare earth production equipment and raw materials
- Rare earth extraction, processing, magnet manufacturing technology and data
- Lithium battery and materials, equipment and technology
- Some superhard materials, equipment, and technology
In addition, it issued new rules imposing extraterritorial export control measures for rare earth items, effectively extending China's regulatory reach beyond its borders. CTM examined the rationale for their introduction, encompassing closing loopholes, direct retaliation, and geopolitical considerations.
The Trump administration reacted to these moves with a strong rhetorical push. In response, MOFCOM rejected the U.S. interpretation of China's actions, dismissing claims by Trump administration officials that the measures apply broadly to consumer products as rhetoric "deliberately causing unnecessary misunderstanding and panic.
Also this week, the U.S. remedy related to the Section 301 investigation on China's practices in the maritime, logistics, and shipbuilding sectors went into effect, and in conjunction with this, USTR announced modifications to certain aspects the measures. In response to the Section 301 measures, China initiated reciprocal port fees on U.S.-affiliated vessels, and also sanctioned five U.S. companies and launched a new investigation.
China also announced an antitrust investigation on U.S. tech company Qualcomm.
In Europe, a Dutch semiconductor company with a Chinese owner came under pressure from the Dutch government, replacing its CEO in response, with U.S. influence playing a role.
At the WTO, new details emerged in the matter of Guatemala's concerns over restrictions on exports of coffee beans and macadamia nuts to China.
And a WTO panel was composed to hear China's complaint regarding EU countervailing duties on Chinese electric vehicles.