On August 28, 2023 the Minister of Commerce of the People’s Republic of China (PRC) Wang Wentao and the U.S. Secretary of Commerce Gina Raimondo held talks in Beijing in light of a tense exchange of measures restricting bilateral trade. It is only a few weeks after the Chinese Ministry of Commerce (MOFCOM) imposed export licensing obligations for gallium and germanium, elements that are essential in the production of semiconductors and used in almost every modern electronic device. Based on the 2020 Chinese export control laws, the restrictions were justified on grounds of national security. Despite their general applicability, they could be viewed as a retaliation against the US Chips and Science Act of 2022 (CHIPS Act), which conditions research and development (R&D) subsidies for the development of high end semiconductors on the recipients being prevented to build production facilities in the PRC. The Chips Act also serves to improve national security. Moreover, the U.S. extended the number of Chinese and…
Free Trade
Page 2 of 4
Politicization of the 5G rollout: Litigation way for Huawei?
The Chinese government’s ambition to become the global leader in new technologies, manifested in state-led industrial policies such as Made in China 2025, has prompted a strong response. For example, the United States significantly tightened its export control regulations and expanded grounds for foreign direct investment screening. In turn,…
US – Origin Marking Requirement: Did the WTO Panel Get the Balance Right between Trade Security and National Security?
On 21 December 2022, the WTO Dispute Settlement Panel ruled against the United States (US) on the product labeling requirement for all goods from Hong Kong to be marked “China” as their country of origin. This requirement came from the executive order that then US President Donald Trump signed on 14 July…
The EU’s Inconsistent Approach towards Sustainability Treaties: Due diligence legislation v. trade policy
In February 2022 the European Commission launched a proposal for an EU corporate sustainability due diligence directive (‘CSDDD proposal’). Companies will be mandated, under threat of sanctions, to monitor adverse impacts that may arise throughout their value chain from violations of a series of sustainability treaties: that is, treaties on human rights, labor and the environment. These…
EU – New Zealand FTA: Towards a new approach in the enforcement of trade and sustainable development obligations
On 30 June 2022, the President of the EU Commission and the New Zealand Prime Minister jointly announced the successful termination of the negotiations for the creation of a new free trade area (FTA) between the European Union and New Zealand. As for New Zealand, the commercial liberalization provided by the new FTA would determine a…