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2024年10月07日

US China Trade Monthly - September 2024

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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 September 2024 issue, we will discuss: (1) USTR inviting public comments on WTO dispute settlement proceeding regarding China’s allegations around certain tax credits under the Inflation Reduction Act; (2) bipartisan group of Senators introducing bill to prevent Chinese companies from using certain American tax credits; and (3) Commerce issuing a proposal to require reporting development of advanced AI models and computer clusters. 

USTR Invites Public Comments on WTO Dispute Settlement Proceeding Regarding China’s Allegations That Certain Tax Credits Under the Inflation Reduction Act Violate the WTO

On August 27, 2024, the Office of the U.S. Trade Representative (USTR) published a notice to the Federal Register “invit[ing] written comments from the public concerning the issues raised” by China in its dispute before the World Trade Organization (WTO) of certain clean energy tax credits in the Inflation Reduction Act. China’s allegations concern “aspects of five tax credits created or amended by the Inflation Reduction Act, and related implementing guidance issued by the U.S. Department of the Treasury and the Internal Revenue Service, and the U.S. Department of Energy.” 
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Bipartisan Group of Senators Introduces Bill to Prevent Chinese Companies from Using Certain American Tax Credits

On July 31, 2024, Senators Jon Ossof (D-GA), Sherrod Brown (D-OH), Bill Cassidy (R-LA), and Rick Scott (R-FL) introduced the bipartisan American Tax Dollars for American Solar Manufacturing Act. The bill aims to “prevent Chinese companies from using American tax credits designed to accelerate solar manufacturing,” thus “further strengthening American energy independence and solar manufacturing.” 
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US Department of Commerce Issues Proposal to Require Reporting Development of Advanced AI Models and Computer Clusters

On September 9, 2024, the US Department of Commerce’s (“Commerce”) Bureau of Industry and Security (BIS) released notice of a proposed rule to create a mandatory reporting requirement for artificial intelligence (AI) developers and computing providers concerning the development, training, and testing of powerful AI models. The rule—titled “Establishment of Reporting Requirements for the Development of Advanced Artificial Intelligence Models and Computing Clusters”—stems from the Biden Administration’s Executive Order 14110 (the “AI EO”).
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