U.S. industry urges “push back” against proposed China export rule

U.S. industry urges “push back” against proposed China export rule

U.S. industry urges “push back” against proposed China export rule

   U.S. industry groups are being urged to strongly voice their objection to a proposed Commerce Department rulemaking that would significantly tighten the trade of many U.S.-made exports to China.
   While the primary goal of the proposed rule is to keep certain American technologies out of the hands of the Chinese military, industry experts say it could result in a backlash of financial harm to U.S. companies across the board due to its unilateral nature. Many countries, including the United States, already participate in the Wassenaar Arrangement, a multilateral regime focused on global conventional arms control.
   The Commerce Department’s Bureau of Industry and Security published the proposed rule in the July 6 Federal Register. Some of the most outspoken industry groups of the proposed rule are the Coalition for Employment through Exports, National Foreign Trade Council and the Semiconductor Industry Association.
   Many industry representatives question how the Commerce Department will adequately implement and enforce the regulation.
   “There’s no consensus on what the real threat is,” said Carol Kalinoski, director of Carol A. Kalinoski & Associates, at the Export Regulatory Compliance Summit in Boston Friday. Commerce “needs to focus on looking at what really is important.”
   One of the aspects of the proposed rule, which the industry calls unreasonable, is the “validated end-user” program for Chinese companies seeking to buy American technology.
   Industry groups are lining up to protest the rulemaking throughout the comment period, which was recently extended to Dec. 4.
   Kalinoski urged shippers to “push back” at the proposed rulemaking. “If this does pass as published, or with some changes, the other shoe will drop” with regards to China’s response, she warned.