As global economic and geopolitical environments enter a new era, companies need to continuously develop and adjust their coherent global business strategies to secure and further expand business opportunities in all markets while minimizing political and legal risks by ensuring compliance. To assist you with that task, Mayer Brown’s US-China Trade Monthly provides news and insights related to the latest US developments impacting the US-China bilateral trade relationship. 

In the current issue, we will discuss: (1) Japan and the Netherlands agreeing on new restrictions on exports of chip-making equipment to China; (2) China’s proposed changes to the “Catalogue of Technologies Prohibited and Restricted from Export”; and (3) the House of Representatives forming a committee on US-China Economic Competition.

Japan and the Netherlands Agree to New Restrictions on Exports of Chip-Making Equipment to China

In a January 27th meeting with the United States, Japan and the Netherlands agreed to restrict exports of advanced chip-manufacturing equipment to China, thus joining the United States’ efforts to cut China’s access to advanced technologies. This agreement follows the announcement by the United States in October 2022 of new US export restrictions on semiconductor chips that go beyond the reach of internationally agreed-upon restrictions.  These new restrictions expanded the long-standing foreign direct product rules under US export control laws with respect to China and certain Chinese Entity List entities with respect to various categories of foreign-produced items derived from US technology. Notably, this further expanded the jurisdictional reach of US export controls to cover key third-country suppliers of China’s semiconductor industry. 

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China Proposed Changes to the “Catalogue of Technologies Prohibited and Restricted from Export”

On December 30, 2022, the Ministry of Commerce of People’s Republic of China (“MOFCOM”) published the “Catalogue of Technologies Prohibited and Restricted from Export (‘the Catalogue’) (For Soliciting Public Comment),” proposing significant changes to the Catalogue.  As discussed below, the proposed revisions would loosen controls in areas where “international technological cooperation” is desired, while tightening controls in areas where China may enjoy a technological advantage. 

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US House of Representatives Forms Select Committee on US-China Economic Competition, Indicating Increased Legislative Focus on the Issue

On January 3, the 118th Congress was inaugurated. As a result of the 2022 midterm elections, party control in the House of Representatives shifted from Democratic control to Republican control. Shortly after taking power, Republican leadership in the House introduced and passed H. Res. 11, which formed the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. Though the Committee cannot legislate itself, it can provide legislative recommendations on US-China economic competition issues, and indicates that Congress has made the issue a priority.

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