UFLPA Entity List Challenge, Agriculture in CFIUS, and South Korea’s Potential Export Control Cooperation
Chinese Companies Unlikely to Succeed in Challenging UFLPA Entity List
The Court of International Trade recently ruled that Chinese companies, specifically Ninestar Corporation and its affiliates, are unlikely to succeed in their case challenging their placement on the Uyghur Forced Labor Prevention Act (UFLPA) entity list. In the court’s opinion, it was determined that the government’s listing decision was adequately explained and supported by the Forced Labor Enforcement Task Force (FLETF). Additionally, the court concluded that the companies had not demonstrated irreparable harm and that the balance of hardships and public interest favored the government due to the importance of denouncing forced labor. This ruling highlights the challenges importing communities may face when contesting agency actions related to enforcing the UFLPA.
Highlights:
- Chinese companies, including Ninestar Corporation, challenged their placement on the UFLPA entity list.
- The Court of International Trade ruled that these companies were unlikely to succeed in their case.
- The court determined that the government adequately explained and supported its listing decision.
- The companies failed to demonstrate irreparable harm, and the balance of hardships and public interest favored the government.
- This ruling sheds light on the challenges faced by importing communities when contesting UFLPA-related agency actions.
Secretary of Agriculture Joins CFIUS to Safeguard National Security
President Biden recently signed a six-bill appropriations package to fund the U.S. government through September 30, 2024, which includes a new trade-related policy rider. This rider adds the Secretary of Agriculture “on a case by case basis” to the Committee on Foreign Investment in the United States (CFIUS). The addition of the Secretary of Agriculture aims to review certain foreign investments related to agricultural land, agriculture biotechnology, and the agriculture industry to ensure they do not compromise national security interests. The move comes in response to bipartisan calls from Congress to expand CFIUS’s composition and jurisdiction, particularly in light of concerns about foreign adversaries investing in U.S. real estate near military or sensitive government facilities, including agricultural lands.
Highlights:
- President Biden signed a six-bill appropriations package, incorporating a trade-related policy rider.
- The rider adds the Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS).
- The Secretary of Agriculture’s inclusion is aimed at reviewing foreign investments related to agriculture to safeguard national security.
- The measure addresses concerns about foreign adversaries investing in agricultural lands near military or sensitive government facilities.
- The move follows bipartisan calls to expand CFIUS’s composition and jurisdiction in response to these concerns.
South Korea Considers Joining US in Export Controls
The US has been restricting its exports of semiconductor manufacturing equipment (SME) to limit China’s access to cutting-edge technology. Japan, the Netherlands, Germany, and South Korea are reported to be cooperating with these efforts. China has a high level of dependence on outside sources for semiconductor manufacturing equipment, with imports worth $25.3 billion in 2020, $39.9 billion in 2021, and $28.8 billion in 2022. The US is attempting to block such equipment from entering China to contain their technological progress.
Highlights:
- South Korea is reportedly in talks with the US regarding Seoul’s participation in such export controls aimed at stopping the rise of China’s chip sector.
- The US has been restricting its exports of semiconductor manufacturing equipment (SME) to limit China’s access to cutting-edge technology.
- Japan, the Netherlands, and Germany are already cooperating with the US in these export controls, and South Korea is said to join soon.
- China has a high level of dependence on outside sources for semiconductor manufacturing equipment, with the US accounting for most of the industry’s design and SME.
- While these export controls may delay the progress of China’s semiconductor development, they may also fan China’s desire for complete manufacturing independence.
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