This past week, CTM covered the following issues.

China’s Ministry of Commerce (MOFCOM) issued a blocking order against U.S. penalties that had been imposed on some Chinese companies for violating U.S. sanctions related to trading in Iranian oil. This action marks the first invocation of China's blocking rules, which are designed to neutralize the impact of foreign secondary sanctions.

China’s rare earth exports rebounded in March, maintaining a steady global footprint one year after Beijing tightened its grip on the strategic minerals. However, new customs data reveals a divergence in trade patterns, with shipments to the United States and Japan plummeting amid escalating national security friction.

CTM provides a review of China’s Unreliable Entity List (UEL) system and its implementation, which is likely to play an increasingly prominent role in the months ahead with the newly revised Foreign Trade Law and the Provisions on Industrial and Supply Chain Security.

In the U.S., the Office of the U.S. Trade Representative (USTR) initiated the second review of the Section 301 tariffs originally imposed on Chinese imports during the first Trump administration, and subsequently reviewed, extended, and modified during the Biden administration.

At a hearing last week held by USTR as part of a Section 301 investigation on the failure of various governments to ban imports made with forced labor, various witnesses testified and U.S. government officials asked questions, with Chinese practices playing a prominent role.

USTR also released its Special 301 report "on the adequacy and effectiveness of U.S. trading partners’ protection and enforcement of intellectual property (IP) rights," repeating many of its long-standing complaints about Chinese policies and practices in this area.

The Federal Communications Commission (FCC) voted to advance a proposal to ban Chinese labs from testing and certifying electronic devices in the U.S. market. 

A proposed overhaul of the EU's cybersecurity rules could cost the European Union nearly €367.8 billion over five years if Chinese suppliers are forced out of key sectors, according to a joint report published by the China Chamber of Commerce to the EU (CCCEU) and KPMG.

In the WTO dispute brought by China against EU countervailing duties on Chinese EVs, the U.S. third party submission highlights a few key legal issues in the dispute.

At the meeting of the WTO's Subsidies and Countervailing Measures Committee last week, governments discussed overcapacity, a level playing field, transnational subsidies, and China's "First Set of Key Technology Equipment" program.