International Trade Law News

Published by Jacobson Burton Kelley PLLC

Yesterday, the Coalition for American Solar Manufacturing (CASM) filed antidumping (AD) and countervailing (CVD) duty petitions with the U.S. Department of Commerce and the International Trade Commission alleging that Chinese manufacturers of crystalline silicon photovoltaic cells and panels are selling in the U.S. market at less than fair value and are receiving illegal subsidies from the Chinese government.

CASM is a coalition of seven solar companies that manufacture solar cells and panels in the United States. The coalition is led by SolarWorld, the largest U.S. solar manufacturer. The six other companies have chosen to be anonymous, which is unusual in U.S. AD/CVD cases.

The scope of merchandise alleged by CASM to be subject to these AD/CVD petitions is as follows:

Crystalline silicon photovoltaic (PV) cells, whether or not individually or partially or fully assembled into other products, including, but not limited to, modules, laminates, panels and building integrated materials.

The scope covers crystalline silicon PV cells of thickness equal to or greater than 20 micrometers, having a heterogeneous, homogeneous or patterned p/n junction, heterojunction, metal-insulator-semiconductor junction or charge-induced junction. The junction may be formed by any means, including but not limited to dopant diffusion, ion implantation, epitaxial growth, any other deposition or growth of semiconductors, insulators or metals, or bonding of dissimilar materials. The merchandise subject to these petitions may be either partially or fully processed.

Merchandise covered by this investigation is currently classified in the Harmonized Tariff System of the United States (HTSUS) under subheadings 8541.40.60.20, 8451.40.60.30, 8501.61.00.00 and 8507.20.80. 

The petitions do not include thin-film photovoltaic products produced from amorphous silicon, cadmium telluride, copper indium gallium selenide, or dye-sensitized solar cells.

The AD petition alleges that Chinese solar cell and panel producers are dumping their products in the United States in amounts greater than 100% of their value.

The CVD petition claims that Chinese solar cell and panel producers benefit from a range of subsidies from the Chinese government, including cash grants; significantly discounted raw material inputs, such as polysilicon and aluminum; discounted or free land, power and water; preferential loans and directed credit; tax exemptions, incentives and rebates; export assistance credits; and export insurance at preferential rates. 

The statutory timeline for the AD and CVD cases indicates that preliminary antidumping duties could be imposed on these products by January 12, 2012, although such duties could be imposed 90 earlier since the petitioners have alleged “critical circumstances” and are seeking to have duties applied retroactively.

Labels: Antidumping, China, Countervailing Duties

Tomorrow is the last day to register for the third annual U.S.-China High Technology Working Group  (HTWG) Public-Private Sector Dialogue that will be held in Washington, DC on Monday, September 26, 2011.

The HTWG was established for the U.S. and China to provide an update on their export control policies and practices, to offer an opportunity for U.S. and Chinese companies to interact directly on these issues, and to learn from individual U.S. and Chinese exporters about the ways in which the two governments can support high technology trade for civilian end-uses.

The program, which is being presented in partnership with the National Association of Manufacturers (NAM), includes an excellent line-up of speakers, including high-level U.S. and Chinese officials from the U.S. Department of Commerce's Bureau of Industry and Security (BIS) and China's Ministry of Commerce (MOFCOM), as well as industry panels addressing the semiconductor industry, aerospace/aviation issues and export compliance practices.

The current agenda and registration information can be found here.

Labels: China, Export Controls

The Bureau of Industry and Security (BIS) announced today that the next session of the U.S.-China High Technology Working Group (HTWG), which will be held in Washington, DC at the end of September 2009 will include a public-private dialogue on Tuesday, September 29, 2009 (the day before Update 2009 begins) in cooperation with the National Association of Manufacturers (NAM).

Participants in the public-private HTWG event will focus on identifying barriers to U.S.-China high technology trade, particularly in two of the largest categories of bilateral advanced technology trade: civil aviation-aerospace and information technology. The principal goals of this dialogue are to offer an opportunity for U.S. and Chinese companies to interact with each other and with government officials directly on these issues, and to learn from individual U.S. and Chinese companies about the ways in which the two governments can further support high technology trade for civilian end-uses in China.

The HTWG, which was established in 2005, meets twice a year to discuss ways to facilitate secure, civilian high technology trade between the U.S. and China.

Labels: China, Export Controls

An antidumping petition was filed today with the U.S. International Trade Commission and Department of Commerce against woven electric blankets from China.

The petitioner in this case is Jarden Consumer Solutions, a subsidiary of Jarden Corporation (NYSE: JAH) and the owner of Sunbeam Bedding and several other well known consumer brands, including Mr. Coffee.

The petition identifies the product allegedly sold at less than fair value as finished or unfinished woven electric blankets of all sizes including twin, full, queen and king sizes. The subject blankets consist of a shell of woven fabric, made of synthetic or natural fiber, or a blend of synthetic and natural fiber which contains heat-producing wire whose temperature is controlled by one or more thermostats or controllers. Imported woven electric blankets are classified under Harmonized Tariff Schedule of the United States (“HTSUS”) subheading 6301.10.0000 and are currently subject to an 11.4% duty rate.

Labels: Antidumping, China

Representative Brad Sherman (D-CA), Chairman of the House Foreign Affair's Committee's Subcommittee on Terrorism, Nonproliferation and Trade Brad Sherman (D-CA) has announced that the subcommittee will hold a hearing next week on U.S. export controls on satellite technology.

The hearing, which will be held at 1 p.m. on April 2, 2009 in the room 2175 of the Rayburn House Office Building, will feature the following witnesses:

Labels: China, Export Controls, ITAR

As a follow-up to our previous post on negotiations involving the China Validated End-User (VEU) program, the Bureau of Industry and Security and China's Ministry of Commerce last night concluded an agreement that would fully implement the China VEU program. Among other things, the agreement permits BIS officials to conduct on-site inspections of the companies in China that have been designated as VEUs.

BIS announced the agreement in the following press release:

WASHINGTON, D.C. – The Bureau of Industry and Security (BIS) today announced the full implementation of the Validated End-User (VEU) program for the People’s Republic of China. With agreement on procedures to ensure the program’s secure and efficient operation, civilian U.S.-China high-technology trade will benefit from the continued export of certain products to VEU-approved companies without individual licenses. The VEU program facilitates civilian trade by reducing administrative and logistical hurdles for certain exports to pre-screened companies in China.

“We are pleased to have reached this milestone agreement with China, one of our nation’s most important trading partners,” Under Secretary of Commerce Mario Mancuso said. “This agreement will maximize the security and trade-enhancing benefits of the VEU program, and continue a promising chapter in civilian U.S.-China high technology trade. U.S. exporters now have a more streamlined way to export to companies in China who have a record of using U.S. technology responsibly.”

Established in 2007, the VEU program uses a market-based approach to facilitate civilian high-technology trade with China. The program permits civilian companies in China, who pass a rigorous national security review and agree to strict follow-on compliance obligations, to receive under a VEU-specific authorization the same U.S.-controlled items they could previously receive under individual Commerce Department licenses.

Labels: BIS, China

Bloomberg reported this afternoon that the Commerce Department's Bureau of Industry and Security (BIS) and the Government of the People's Republic of China are making a last ditch effort to finalize an agreement that would allow the China Validated End-User (VEU) program to continue by permitting BIS officials to conduct on-site inspections in China.

The Washington Times reported last month that BIS was close to issuing a new regulation that would suspend the China VEU program until China agrees to on-site inspections of the five Chinese companies that have been granted VEU status. That regulation has not yet been issued.

Under Secretary of Commerce Mario Mancuso responded to the Washington Times report by saying that "the lack of an agreement diminishes VEU’s trade enhancing benefits, and Commerce is evaluating all options related to the program for China, including suspension."

In October 2008, the Government Accountability Office recommended that the Secretary of Commerce suspend the VEU program until BIS was permitted to conduct on-site reviews in China to ensure that the items shipped to the VEUs in China are used as intended.

Labels: BIS, China

The Washington Times reported tonight that the Bureau of Industry and Security (BIS) is close to issuing a new regulation that would suspend the China Validated End-User (VEU) program until China agrees to on-site inspections of the five Chinese companies that have been granted VEU status. The article states that:

A Commerce Department official, who spoke on the condition of anonymity because of ongoing diplomatic negotiations, told The Times that the Bush administration plans to suspend the program unless it can impose safeguards before it leaves office next month.

"This program will either be fixed or ended before Jan. 20," the official said, adding that a decision will be made "in days, not weeks."

China could avoid a suspension of the program by agreeing to U.S. demands for on-site inspections. The official said, however, that it does not appear likely that Beijing will make concessions before the Bush administration leaves office.

In October 2007, the Bureau of Industry and Security (BIS) announced the following five VEUs in China:

* Applied Materials China, Ltd.
* BHA Aerocomposite Parts Co., Ltd.
* National Semiconductor Corporation
* Semiconductor Manufacturing International Corporation
* Shanghai Hua Hong NEC Electronics Company, Ltd.

In January 2008, the Wisconsin Project on Nuclear Arms Control issued a report (PDF) criticizing the selection of two of the five Chinese companies named as VEUs. The report stated that Shanghai Hua Hong NEC Electronics Company, Ltd. and BHA Aerocomposite Parts Co., Ltd. "are affiliated closely to China’s military industrial complex and to companies that have been punished by the U.S. government for proliferation or other improper export behavior."

In October 2008, the Government Accountability Office recommended that the Secretary of Commerce suspend the VEU program until BIS was permitted to conduct on-site reviews in China to ensure that the items shipped to the VEUs in China are used as intended.

Labels: BIS, China

The Norfolk, Virgina-based The Virginian-Pilot newspaper reports on last week's arrest of Mr. Shu Quan-Sheng, the President of AMAC International, for violating the Arms Export Control Act and FCPA.

The article notes that:

The recent arrest of a Newport News scientist on charges of selling space technology to China is part of an ongoing U.S. crackdown on illegal arms sales to the communist nation.

The article also indicates that: Mr. Shu "is expected to ask a federal judge Monday to go free on bond" but that "Federal prosecutors will ask the judge to keep Shu in jail without bond pending grand jury action."

Labels: China, Export Controls

The price of wire hangers from China is going to be remain high. By a vote of 6-0, the U.S. International Trade Commission (ITC) today made a final affirmative injury determination in the antidumping case on steel wire garment hangers from China.

As a result of the ITC's affirmative determination, the Department of Commerce will issue an antidumping duty order on imports of this product from China requiring the payment of cash deposits for antidumping duties ranging from 15.44% to 186.98%.

The petitioner in this investigation was Alabama-based M&B Metal Products Company, Inc. The scope of this antidumping investigation covers a wide range of steel wire garment hangers that are used by the dry cleaning, industrial laundry, textile, and uniform rental industries. These hangers are are classifiable under HTS number 7326.20.0020.

Labels: Antidumping, China

The Financial Times reported today that the United States Trade Representative is close to filing a complaint against China in the World Trade Organization challenging China's export restrictions on raw materials used in steel-making and other industries.

The article states:

The US has been working on the case intensely for the past few months, and could move ahead with a request for consultations – the first step in the WTO dispute settlement process – within weeks, according to people close to the discussions.

A WTO fight over China’s treatment of raw materials would shake up the global steel and chemicals industries, where China has emerged as a leading producer and competitor to western companies in recent years.

The final decision has yet to be made but a move by the US before the presidential election in early November would support Republican claims that the Bush administration has not been shy about bringing WTO cases against China that it believes it can win. Amid increasing scepticism about the benefits of trade in the US, Democrats in Congress have attacked the administration for being too lax on trade enforcement.

The US is expected to argue that Chinese export quotas and taxes on raw materials such as metallurgical coke, molybdenum, silicon carbide and fluorspar used in steel production artificially deflate domestic prices and inflate global prices, putting US producers at a disadvantage in violation of WTO rules.

US officials have spent the past several months narrowing the focus of a potential case from an initial list of more than a dozen raw materials to a handful of products where the US is confident that China breached the “protocol of accession” it signed on joining the WTO in 2001, one person familiar with the matter said. Other items that have been considered include zinc, bauxite and antimony.

Labels: China, USTR

The Bureau of Industry and Security (BIS) announced in today's Federal Register that it is initiating a foreign availability assessment of uncooled thermal imaging cameras incorporating microbolometer focal plane arrays in China.

These specialized cameras are controlled for national security reasons under Export Control Commodity Classification Number (ECCN) 6A003.b.4.b on the Commerce Control List.

BIS's Sensors and Instrumentation Technical Advisory Committee (SITAC) has indicated that these cameras are available in China in sufficient quantities to render the U.S. export control of the cameras ineffective.

Public comments on this foreign availability assessment are due on September 17, 2008.

Labels: BIS, China

The Knoxville News Sentinel continues their coverage of the trial of University of Tennessee Professor J. Reece Roth who is accused of violating the Arms Export Control Act by providing technical data to a Chinese national in the United States. Yesterday's main witness for the prosecution was Mr. Xin Dai, the Chinese graduate student at the center of the controversy. An Iranian graduate student also took the stand.

According to the indictment, Mr. Dai was a citizen of China who held a F-1 visa while living in Knoxville, Tennessee and was enrolled as a graduate student studying for a Ph.D. in Electrical Engineering with the University of Tennessee College of Engineering. Mr. Dai was also employed by the University of Tennessee College of Engineering as a Graduate Research Assistant and Graduate Teaching Assistant from August 2002 to August 2006, during which time he worked under the supervision of Professor Roth, Director of the University of Tennessee Plasma Sciences Laboratory . In May 2005, Roth assigned Dai to work on the government contract for the development of an unmanned aerial vehicle.

The article reports:

"At the time, I had no idea what export control data was," he told jurors in U.S. District Judge Tom Varlan's courtroom.

Xin said Roth was considered a plasma-researching rock star in China.

"In China, he has a very prestigious reputation," Xin said. "It was a dream for me coming here. … I came here primarily because of Dr. Roth."

Xin testified that he knew there were supposed to be limitations on his involvement in the military project, including being barred from conducting tests on the drone itself.

"Were you allowed to go to AGT?" Theodore asked Xin.

"No, I don't think so," he said.

Roth took him to AGT anyway to meet with employees about a "breakthrough" in the work, Xin said. Roth also instructed Xin to send a report to a Chinese professor via e-mail, a report that the government contends contained information about the project while Roth was himself at Fudan University in Shanghai. Roth cited e-mail problems as the cause for having the document sent to the Fudan professor, Xin testified.

* * *

But Xin still praised Roth from the witness stand Wednesday.

"I admire him," Xin said. "This is what Dr. Roth told me to do - tell the truth. He said the purpose of scientific research is truth."

Iranian graduate student Sirous Nourgostar, who prosecutors also allege Roth illegally allowed access to project information, testified that Roth offered him similar advice.

"He told me to tell the truth or they would send me back to Iran," Nourgostar testified.

Neither Xin nor Nourgostar have been indicted.

Labels: China, ITAR

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has imposed a $90,000 civil penalty ($10,000 per violation) on Taiwan's Johnson Trading & Engineering Company, Ltd. for knowingly causing the unlicensed exports of computer chips to China. BIS also charged that Johnson Trading took action to evade the EAR and acted with knowledge of a violation.

According to BIS, on seven occasions between February 2003 and December 2003, Johnson Trading took actions to evade the EAR and knowingly caused the unlicensed exports of SRAM modules, an EE Mixed module and an EEPROM module (all classified as ECCN 3A001.a.2.c) from the U.S., via Taiwan and Hong Kong, to China. Johnson Trading allegedly ordered the computer chips from a U.S. exporter and falsely represented to that exporter that the country of ultimate destination was Taiwan. Following the shipment of the computer chips to Taiwan, Johnson Trading arranged and facilitated for the items’ subsequent shipment to China via Hong Kong. The computer chips in question were subject to the EAR and controlled for national security and anti-terrorism reasons.

Johnson Trading also agreed to a suspended five-year denial of export privileges and to an audit of the company’s export compliance program. Under the settlement agreement Johnson Trading must provide a copy of their export compliance program to BIS's Office of Export Enforcement within seven months. If Johnson Trading complies with the terms of the settlement agreement, BIS will suspend $30,000 of the $90,000 penalty.

Labels: BIS; EAR, China, Export Controls

Another good post in the Mexico Law Blog. This time on companies considering moving their operations from China to the U.S. and Latin America:

William Armbruster and Bill Mongelluzzo recently wrote an interesting article in the Shipping Digest discussing how many businesses that have outsourced manufacturing operations to China are now transferring (or seriously considering transferring) those operations to the U.S. or Latin America, particularly Mexico.

In deciding whether to leave China, businesses are focusing on "total cost of ownership" of their China operations, which, according to the article, "include the costs of labor, raw materials, transportation, taxes, port congestion, intellectual property protection and import duties." The article suggested that the dramatic appreciation of the Chinese yuan in relation to the U.S. dollar over the last 3 years has substantially affected certain elements of the total cost of ownership.

The article continued:

"Higher transportation costs must be factored into the entire supply chain, from the sourcing of raw materials used in the manufacturing process, to the ocean and inland costs of transportation of the finished product as it moves from the factory to retail outlets. On that scale, Latin America, and especially Mexico, rank favorably.

Manufacturers of products that include petroleum, plastic or steel have made Mexico a popular location for new or expanded production because those raw materials can be sourced competitively in Mexico.

Although wages in Mexico are higher than in Asia, they are still much lower than in the United States. In addition, Mexico’s proximity to the U.S. market cuts down on transportation costs, especially for bulky products such as appliances. Central America and the northern rim of South America also enjoy a time advantage in comparison with Asia. The faster delivery time can be important for producers of fashion items and apparel that change with the seasons."

In reviewing the total cost of ownership, businesses considering transfer of their manufacturing operations to Mexico or other Latin American countries should carefully analyze, among other factors:

• The ways, if any, in which the North American Free Trade Agreement (NAFTA), the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA), and other free trade regimes (including Free Trade Zones and maquiladora and similar programs) may reduce the total cost of ownership. Businesses contemplating a move to Mexico might also consider President Felipe Calderon's National Infrastructure Program (NIP), a 5-year, US$141 billion initiative to improve Mexico's infrastructure (including the planned Punta Colonet port facility near Ensenada), which may, in the long-run, help manufacturers reduce the shipping and port congestion costs of the total cost of ownership.
• The cost of security of their personnel and property. Security-related businesses seem to be booming in in Latin America as kidnapping has become a greater threat in the region and drug traffickers have attempted to penetrate the legitimate export shipments of well-known companies with contraband, as I reported on August 8, 2008.
• Whether their Intellectual property can be adequately protected. Although the strength of intellectual property laws and their enforcement is subject to considerable variation in Latin America, a 2007 International Chamber of Commerce survey ranked Mexico as the 16th most unfavorable jurisdiction in the world for intellectual property protection (China ranked as the 1st most unfavorable jurisdiction, Brazil ranked as the 4th, and the U.S. ranked as the 27th).

Labels: China, Mexico

The Government of Taiwan has recently announced that it is considering easing restrictions on chipmakers investments in China. This follows Intel Corp’s 2007 announcement that in 2009 it will begin the production of 12 inch semiconductor wafers in China, and the announcement coincides with Taiwan’s hosting of Applied Materials Inc.’s president and CEO, Michael Splinter.

Taiwan has already authorized two Taiwanese semiconductor manufacturers to build factories in China. Taiwan’s easing of restrictions on investment in China for chipmakers seems to have been influenced by the lack of U.S. restrictions on Intel’s investment in China. President Ma noted the lack of U.S. objection to Intel’s production of 12 inch semiconductor wafers in China, which is particularly important since the U.S. is an active participant in the Wassenaar Arrangement. Though not a participating state in the Wassenaar Arrangement, Taiwan’s President Ma asserts that the principles of the Wassenaar Arrangement will be considered when easing controls on investment in China. Also, Taiwanese officials state that they do not fear losing 12 inch wafer fabrication to China because China lacks the environment for the development of these industries and crucial technologies will remain in Taiwan.

News reports indicate that Taiwan’s Ministry of Economic Affairs plans to relax restrictions on investments by local chipmakers in mainland China in three phases over three months.

1. In July, the ministry will boost the ceiling limit on China investment to 50 percent of the net worth of Taiwanese enterprises from the existing 40 percent.

2. In August, the economics ministry will ease restrictions on the industries Taiwanese enterprises are allowed to invest in China.

3. In September, the ministry will reveal a concrete timetable for liberalizing investment in Taiwan by mainland Chinese enterprises.

It seems that several related factors have led to Taiwan’s proposed easing of restrictions: (1) liberalization of U.S. controls on advanced semiconductor production abroad have put pressure on Taiwan to do the same; (2) concerns expressed by U.S. based Taiwanese chipmakers, such as Applied Materials Inc., when faced with their competition’s utilization of lower production costs in China; (3) Taiwan’s realization that if it wants to continue to attract investment from high tech industries, it must ease restrictions on investment in China; and (4) a desire to enhance relations between Taiwan and China following the establishment of direct flights and tourism.

Considering Taiwanese reports that Taiwanese investments in China have grown 30 percent from 2006 to 2007 to US$9.974 billion, businesses operating in Taiwan will want to keep a close eye on the easing of restrictions for investment in China. Though China lacks the environment and technologies for higher end chip production now, the migration of higher end production to China from other nations, e.g., the U.S., will require Taiwan to adjust its policies and regulations in order to keep its industry competitive.

Editors note: Thanks to a loyal reader for submitting this article.

Labels: China, Export Controls, Taiwan

The U.S. Attorney for the Eastern District of Virginia announced yesterday that Tai Shen Kuo of New Orleans, La. pleaded guilty to a one-count criminal information charging him with conspiracy to deliver national defense information to the People’s Republic of China (PRC). Kuo was arrested on Feb. 11, 2008 on a criminal complaint charging this same offense. Kuo faces up to life in prison when he is sentenced on Aug. 8, 2008.

According to a Statement of Facts filed with Kuo’s Plea Agreement, during March 2007 to February 2008 Kuo, a naturalized U.S. citizen, obtained national defense information from Gregg W. Bergersen, a Weapons Systems Policy Analyst at the Defense Security Cooperation Agency, an agency within the Department of Defense. The information pertained primarily to U.S. military sales to Taiwan and U.S. military communications security and was classified at the Secret level.

The Statement of Facts states that during the course of the conspiracy, Kuo cultivated a friendship with Bergersen, bestowing on him gifts, cash payments, dinners and trips to Las Vegas. Kuo also led Bergersen to believe that he would make Bergersen a part owner or an employee of a company selling U.S. defense technology to Taiwan after Bergersen’s retirement from government service.

Unbeknownst to Bergersen, Kuo passed along to an official of the government of the PRC the documents and information Bergersen had provided him. The PRC official directed Kuo to collect specific documents and information and paid him approximately $50,000 for completing those tasks.

On March 31, 2008, Bergersen pleaded guilty to conspiracy to deliver national defense information to a person not entitled to receive it. Bergersen is scheduled to be sentenced on July 11, 2008, and faces a maximum possible sentence of 10 years in prison.

Labels: China

Saturday's New York Times reported on the China International Exhibition on Police Equipment that was sponsored by China's Ministry of Public Security and recently held in Beijing. The article describes the large number of U.S. companies exhibiting at the show and that "the trade show coincided with increasing controversy in the United States over American exports of crime-control equipment to China."

The number of U.S. companies exhibiting at trade show has apparently attracted the interest of the Bureau of Industry and Security:

Asked about the abundant American gear shown at the police equipment trade show, Mario Mancuso, the under secretary of commerce for industry and security, replied with a one-sentence written statement: “Enforcing U.S. regulations on crime control equipment, including the Tiananmen Square Sanctions, is a top priority, and we continually review our regulations to ensure that they effectively support our national security and foreign policy.”

Another Commerce Department official said that questions from The New York Times about American equipment exhibited at the trade show had prompted the department to begin a review of whether American laws might have been broken. The official insisted on anonymity, in keeping with a department policy of not commenting on work that might lead to law enforcement actions.

The department has officials in Beijing and Hong Kong who look for violations of export control laws, but did not try to send anyone into the police equipment trade show.

Labels: BIS, China

The U.S.-China Economic and Security Review Commission will hold a public hearing in Washington, DC on May 20, 2008 to address "China's Proliferation Practices and the Development of its Cyber and Space Warfare Capabilities'' The hearing will examine China's proliferation activities, China's growing cyber space activities and capabilities as well as China's growing presence and capabilities in outer space. Further details on the hearing can be found in Monday's Federal Register.

Congress created the U.S.-China Economic and Security Review Commission in 2000 in the National Defense Authorization Act (Section 1238 of Pub. L. 106-398). The Commission is mandated by Congress to investigate, assess, evaluate and report to Congress annually on "the national security implications and impact of the bilateral trade and economic relationship between the United States and the People's Republic of China."

On a related note, USCC held a public hearing in New Orleans, Louisiana last week on the safety and trade issues related to imported seafood from China. The agenda for that hearing can be found here.

Labels: China

Tai Mak, the younger brother of convicted spy Chi Mak, was sentenced on Monday to 10 years in federal prison, the maximum prison sentence under the Arms Export Control Act ( 22 U.S.C. § 2778(c))

Tai Mak pleaded guilty in June 2007 to conspiring to export defense articles after his brother was convicted of conspiracy to export defense articles, operating as an agent of a foreign government and lying to a federal agent. The Los Angeles Times reported that the "probation report recommended a prison term of 6 1/2 years for Tai Mak, but U.S. District Judge Cormac Carney said a longer sentence was appropriate because the technical information he attempted to export, although unclassified, was sensitive nonetheless."

Labels: China, Export Controls