Juli 16. 2024

US China Trade Monthly - June 2024

Authors:

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 this June 2024 issue, we will discuss: (1) the Biden Administration’s US International Cyberspace & Digital Policy Strategy; (2) US Department of Homeland Security’s updated Uyghur Forced Labor Prevention Act Entity List; 3) President Biden ordering first-ever real estate divestment following CFIUS review; and (4) the US issuing final guidance on “foreign entity of concern” criteria.

Biden Administration Releases US International Cyberspace & Digital Policy Strategy

On May 6, 2024, the US Department of State’s Bureau of Cyberspace and Digital Policy (the “Bureau”) released its International Cyberspace and Digital Policy Strategy.

US Department of Homeland Security Publishes Updated Uyghur Forced Labor Prevention Act Entity List

On May 17, 2024, the US Department of Homeland Security (“DHS”), as the Chair of the Forced Labor Enforcement Task Force (“FLETF”), announced the addition of 26 Chinese entities related to the cotton industry to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List, which is available on the DHS UFLPA website.

US President Orders First-Ever Real Estate Divestment Following CFIUS Review

On May 13, 2024, President Biden issued an Order blocking the purchase and requiring the divestment of Chinese-owned real estate that is the location of a cryptocurrency mining facility near F.E. Warren Air Force Base, a Minuteman III strategic missile facility outside of Cheyenne, Wyoming. The Order is the first instance of Presidentially ordered divestment of property interests in real estate pursuant to the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”), which expanded the jurisdiction of the Committee on Foreign Investment in the United States (“CFIUS”) to review certain real estate transactions.

Final Guidance Issued on “Foreign Entity of Concern” Criteria

On May 3, 2024, the US Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued final regulations (T.D. 9995) concerning the clean vehicle credit under Section 30D of the Internal Revenue Code (the “Code”),1 as amended by the Inflation Reduction Act (“IRA”) and the previously owned clean vehicle tax credit under Section 25D of the Code (the “Final Regulations”).