The Congressional Research Service issued a report Aug. 4 on emerging military technologies, including supply chain risks faced by the U.S. and considerations for Congress. The CRS suggests the U.S. supply chain for advanced military technologies may be compromised by Chinese industrial espionage or attempts to steal intellectual property relating to hypersonics. The report also cites the National Security Commission on Artificial Intelligence finding that the U.S. “lacks domestic facilities” to produce components needed to make artificial intelligence technologies, forcing the nation to rely on “foreign fabrication and complex global supply chains for production.” The report cites experts who say technology developments are likely to “outpace” U.S regulation, adding that the U.S. should consider “broad” engagement with allies to “advance collaboration on emerging technologies, norms, and standards setting.”
The Treasury Department released its annual report to Congress for 2019 last month on the Committee on Foreign Investment in the U.S., outlining CFIUS statistics, key judgments and an overview of transactions reviewed by the committee. CFIUS said 231 notices were filed last year, roughly the same number of notices filed in 2017 and 2018, which were 237 and 229, respectively. CFIUS took an average of 45 days to complete a review of covered transactions and 85 days to complete an investigation in 2019, the report said. The report also notes a drop in investigations -- CFIUS conducted 113 investigations in 2019 after conducting 158 in 2018 and 172 in 2017.
A State Department spokesperson criticized accusations levied this week by House and Senate Democratic leaders over the administration’s 2019 emergency military sales to Gulf states, saying the agency has been transparent during a congressional probe of the sales. Reps. Carolyn Maloney, D-N.Y., Eliot Engel, D-N.Y., and Sen. Bob Menendez, D.-N.J., subpoenaed four State Department officials Aug. 3 over what they say was an improper use of emergency powers to expedite arms sales (see 2008030046), adding that the agency was “stonewalling” their investigation.
The Bureau of Industry and Security will hold a virtual export control policy conference Sept. 2, covering updates on export control regulations, license exceptions, semiconductor controls and the Entity List. The conference will include a question-and-answer session with BIS officials and “other agency experts,” and will feature updates from the State Department’s Directorate of Defense Trade Controls, sanctions policy and the Committee on Foreign Investment in the U.S. BIS canceled its in-person annual conference earlier this year due to the COVID-19 pandemic (see 2005210051).
The State Department approved a potential military sale to the Philippines worth about $126 million, the Defense Security Cooperation Agency said July 30. The sale includes scout, assault and “light support” boats with armaments and related equipment. The principal contractor for the scout and assault boats is Willard Marine Inc. The principal contractor for the light support boats will be selected “through an open competition contract,” the agency said. The sale also includes 156 machine guns, 36 Gatling guns, thermal scopes and thermal weapons sights, lasers, radios and boat spare parts.
The FDA amended its export listing procedures for dairy and infant formula firms exporting to China to reflect provisions in the U.S-China phase one trade deal, the agency said in a July 29 email to industry. Because the deal recognizes the U.S. dairy safety system “as providing at least the same level of protection” as China’s system, dairy facilities no longer have to provide FDA with confirmation that a third-party auditor “has found the firm to be in compliance” with Chinese dairy regulations, the agency said. This change applies to all Export Listing Module applications received as of July 1. The FDA said its announcement follows a U.S. Department of Agriculture notice that it will no longer conduct plant audits for dairy firms exporting to China as of July 1.
The Treasury Department finalized the fee structure for filing certain transactions with the Committee on Foreign Investment in the U.S. and made a “clarifying revision” to the definition of “principal place of business,” according to a final rule released July 28. The fee structure was first outlined in March and April (see 2004280027), and the original definition for principal place of business was outlined in a January rule. The rule takes effect Aug. 27.
The State Department approved a potential military sale to Kuwait worth about $59.6 million, the Defense Security Cooperation Agency said July 28. The sale includes M1A2K training ammunition and equipment. The principal contractor is BAE Systems.
The State Department approved a potential military sale to the Netherlands worth about $39 million, the Defense Security Cooperation Agency said July 27. The sale includes 16 “AIM-120C-8 Advanced Medium Range Air-to-Air Missiles” and related equipment. The principal contractor is Raytheon Missiles and Defense.
The State Department’s Directorate of Defense Trade Controls is seeking comments on an information collection related to advisory opinion requests, a notice released July 27 said. The revision of the collection is meant to “conform the current [Office of Management and Budget]-approved data collection to DDTC’s new case management system,” the notice said. Comments are due Aug. 27.