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October 30, 2026

Volume 6

Issue 22

ICAS Trade ‘n Tech Dispatch (online ISSN 2837-3863, print ISSN 2837-3855) is published about every two weeks throughout the year at 1919 M St NW, Suite 310, Washington, DC 20036.
The online version of ICAS Trade ‘n Tech Dispatch can be found at chinaus-icas.org/icas-trade-technology-program/tnt-dispatch/.

What's Been Happening

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U.S.-China Trade Stability Under Test as New Export and Investment Curbs Revealed

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In One Sentence

  • China’s Ministry of Commerce issued a series of announcements from October 16-19 expanding export controls to AI, biomedical and solar-manufacturing technologies, drones, and tunnel boring machines.
  • The AI proposal would ban or restrict exports of 23 technologies spanning large models, AI agents, and computing clusters and also require exporters to register these and 12 listed solar technologies with MOFCOM before transferring them abroad; the catalogue is under public comment through Nov. 15.
  • Updated drone controls tied to thresholds such as battery life, speed, and range, along with new controls on tunnel boring machines take effect Nov. 18, with licenses required for tunnel boring machine exports to countries in disputes with China and a simpler registration for other destinations.
  • On October 22, the Treasury Department proposed its first rule implementing the Comprehensive Outbound Investment National Security Act, adding biotechnology to the restricted sectors and barring U.S. investment in any AI system development in China and other countries of concern, with comments due December 7.

Mark the Essentials

  • Beijing also tightened oversight of its own outbound capital, with a revised 76-article rule taking effect December 1 that requires investors, now including individuals, to report foreign demands to hand over technology or data or to dispose of stakes.
  • Even as Beijing tightened AI controls, MiniMax and DeepSeek completed export registration for open-source releases and overseas licensing of their models. While in Washington, the Department of Homeland Security ordered federal civilian agencies to remove DeepSeek products and third-party tools built on them.
  • China’s commerce ministry called the Treasury proposal discriminatory, reserved the right to take countermeasures, and said it runs counter to the consensus reached by the two presidents.
  • Demand for U.S. chips persists, as ByteDance, Alibaba, and Tencent were reported to have ordered more than three million of Nvidia’s export-compliant RTX PRO 5500 cards worth over $35 billion, though Nvidia has told customers it cannot guarantee full delivery.
  • On rare earths, China’s magnet exports to the EU rose 20.5% month on month in September to their highest level since February and shipments to the U.S. rose 18%, but exports still require licenses, and TSMC is reportedly exploring rare-earth-free motors to reduce its exposure.

Expanded Reading

On the Hill

Legislative Developments

  • On October 16, Rep. Gregory Meeks (D-NY) introduced the “Prohibit Corrupt Russia Oil Deals Act,” which would nullify for three years the Treasury Department’s general license authorizing Russian diesel imports through April 2027 and four other licenses for Russian energy shipments, bar new licenses for Russian energy transactions, and direct sanctions on Russia’s energy sector.
  • On October 6, Rep. John James (R-MI) introduced the “Tariff Relief for American Development and Employment Act of 2026,” which would direct net revenue from tariffs imposed after Jan. 20, 2025, to a Commerce Department program assisting U.S. producers that document material injury from tariffs or foreign retaliation.

Hearings and Statements

  • On October 13, 12 senators, six from each party, led by Sen. Richard Blumenthal (D-CT), urged President Trump in a letter to withdraw from his diesel deal with Russian President Vladimir Putin, rescind Treasury’s diesel license and implement the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, following an October 11 statement by seven senators that the deal runs counter to a 2022 ban on Russian energy imports.
  • On October 15, 22 House members, 17 Democrats and five Republicans, led by Reps. Michael McCaul (R-TX) and Jim Costa (D-CA), urged Trump in a letter to fully implement the Graham Act’s tariffs and sanctions by its October 18 deadline and revoke Treasury’s diesel license, but Trump waived the act’s new tariffs and sanctions in an October 16 executive order.
  • On October 18, Senate Armed Services Committee Chair Roger Wicker (R-MS) urged Trump in a statement to accept a deal under which Ukraine would stop striking Russian petroleum infrastructure in exchange for U.S. targeting assistance against Russian missile launches, an arrangement he said Ukrainian President Volodymyr Zelenskyy has agreed to.
  • On October 19, Sen. Peter Welch (D-VT) told Inside U.S. Trade that Democrats would move to pass his “Banning Antiquated Duties and Delivering Equitable American Levies Act,” which would repeal Section 338 tariffs on Canada and refund duties paid, if they win the Senate, while acknowledging they would likely lack the votes to override a veto.
  • On October 15, 57 House Democrats led by Reps. Linda Sánchez (D-CA) and Terri Sewell (D-AL) urged Secretary of State Marco Rubio in a letter to keep the U.S. in the International Labor Organization and pay about $300 million in owed dues, arguing that its standards underpin labor provisions in U.S. trade agreements and Section 301 forced-labor enforcement.
  • On October 24, Sen. Jeanne Shaheen (D-NH) led five other senators, including Sen. Thom Tillis (R-NC), and Rep. Gregory Meeks in letters to the CEOs of six major U.S. banks, port authorities in Texas, New York, and New Jersey, and fuel distributors, in warning that facilitating Russian diesel imports could expose them to criminal and civil liability and demanding that they preserve related records ahead of possible congressional investigations.

Expanded Reading

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