Upcoming: USA pavilion at 2019 China  International Fair for Trade in Services

American International Chamber of Commerce (AICC) will host a USA pavilion at 2019 China  International Fair for Trade in Services (CIFTIS) to promote exports and promote American brands, products and services. AICC welcomes U.S. enterprises to participate into the USA pavilion in 2019 CIFTIS.

2019 China  International Fair for Trade in Services (CIFTIS) co-hosted by the Ministry of Commerce and the People’s Government of Beijing Municipality, has been successfully held for five years, becoming a leading exhibition of trade and services in China and the largest comprehensive fair for trade in services in the world. 2019 CIFTIS  will be held in Beijing from May 28 to June 1 in the theme of “Opening-up, Innovation, Intelligence and Integration”.

This year’s CIFTIS has 5 major features:

Highlight expansion of opening-up in service industry and trade in services, and contribute to building a new pattern of comprehensive opening-up. Implement China’s strategy of expanding opening-up, display the 68 achievements made during the first two batches of Beijing’s expansion of opening-up in service industry and China’s opening-up measures such as free trade pilot zone, promote Beijing’s new round of pilot policies for expansion of opening-up in service industry, standards of trade in services, rule-making and system construction, advance further opening-up and cooperation in global trade in services and contribute to building a community of shared future for mankind.

Stress internationalization and deepen the “Belt and Road” international cooperation on trade in services. Invite countries along the “Belt and Road”, top 30 countries and regions of trade in services, 14 countries that signed trade in services agreements with China, international trade associations and well-known enterprises in service industry and trade in services to participate in the fair.

Stress innovation-driven, intelligent development, integration and improvement, and lead the innovation and development of service industry and trade in services. Actively implement the innovation-driven development strategy, exhibit new models, businesses, and services that new technologies such as artificial intelligence and 5G are applied in service field; Promote innovation achievements in intelligent manufacturing, healthcare, and life, the digitization and intelligence of service industry and trade in services; Facilitate the integrated development between service industries including modern service industry and advanced manufacturing, culture and tourism, and that between trade in services and service consumption.

Emphasize negotiation trade, and enable participating enterprises to achieve practical cooperation. This year’s CIFTIS, with serving customers as the fundamental goal and facilitating negotiation trade as the core, collects demands for project trade and carries out trade matching in advance; Push ahead negotiation and cooperation with more than 100 promotion and negotiation activities.

Make a new exhibition layout, magnify CIFTIS’ role as a platform. This year’s CIFTIS uses the form of “one main venue assisted by multiple others” for the first time, which is to set up the main venue at China National Convention Center and the neighboring Beijing International Convention Center & the Olympic Celebration Square, other venues at Wangfujing Business Street, Financial Street, Central Business District, Sub-center, Huilonguan and Tiantongyuan areas, etc.As a state-level, international and comprehensive trading platform for trade in services, CIFTIS is important in serving national politics, economy, diplomacy, reform and opening up, development, and achieving the expansion of opening-up in China’s service industry and the high-quality development of trade in services.

The AICC team welcome your participation!

Contact:

Mr. Jason Quin
American International Chamber of Commerce
355 S. Grand Ave., Suite 2450
Los Angeles, CA 90071
Email: jasonquin@aiccus.org

Ms. Wendy Liu
AICC Beijing Office
9 Jianwai Street, DRC 7-3-43
Chaoyang, Beijing, 100600
Email: beijing@aiccus.org

Apply Now!

Link:

CIFTIS website

USTR: Statement on the United States Trade Delegation’s Meetings in Beijing

Washington – On January 7-9, an official delegation from the United States led by Deputy U.S. Trade Representative Jeffrey Gerrish held meetings in Beijing with Chinese officials to discuss ways to achieve fairness, reciprocity, and balance in trade relations between our two countries. The officials also discussed the need for any agreement to provide for complete implementation subject to ongoing verification and effective enforcement. The meetings were held as part of the agreement reached by President Donald J. Trump and President Xi Jinping in Buenos Aires to engage in 90 days of negotiations with a view to achieving needed structural changes in China with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft of trade secrets for commercial purposes, services, and agriculture.  The talks also focused on China’s pledge to purchase a substantial amount of agricultural, energy, manufactured goods, and other products and services from the United States.  The United States officials conveyed President Trump’s commitment to addressing our persistent trade deficit and to resolving structural issues in order to improve trade between our countries.

The delegation will now report back to receive guidance on the next steps.

Statement Regarding the United States Delegation to China

Washington, DC – The Office of the U.S. Trade Representative (USTR) today announced the members of an official delegation from the United States to China to discuss the trade relationship between the two countries beginning Monday, January 7, 2019.  

Members of the United States Delegation:

  • Ambassador Jeffrey Gerrish, Deputy U.S. Trade Representative
  • Ambassador Gregg Doud, USTR Chief Agricultural Negotiator
  • Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, U.S. Department of Agriculture
  • Under Secretary of Commerce for International Trade Gilbert B. Kaplan, U.S. Department of Commerce
  • Assistant Secretary for Fossil Energy Steven Winberg, U.S. Department of Energy
  • Under Secretary for International Affairs David Malpass, U.S. Department of the Treasury 

The delegation will be accompanied by senior officials from the White House, USTR, and the U.S. departments of Agriculture, Commerce, Energy, State, and Treasury.

U.S. Department of Commerce Announces Selection of ZTE Special Compliance Coordinator

August 24, Secretary of Commerce Wilbur L. Ross, Jr. announced the selection of Roscoe C. Howard, Jr. to be the Special Compliance Coordinator (SCC) for Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (collectively, ZTE). The Special Compliance Coordinator was selected after a rigorous search by the Bureau of Industry and Security (BIS). This appointment is the result of the historic settlement between the Department of Commerce and ZTE that includes a $1.761 billion fine, a ten-year probationary period, and the installation of the coordinator to conduct regular and comprehensive compliance supervision by a team answerable to BIS.

“Today’s appointment is the continuation of the unprecedented measures imposed on ZTE by the Department of Commerce,” said Secretary Ross. “Mr. Howard is exceptionally well-versed in corporate compliance, having tried more than 100 cases as a federal prosecutor, as well as helping those in the private sector on compliance and ethics issues.”

“I am honored to be selected for this critical role,” said Mr. Howard. “My team and I will be vigilant in efforts to ensure that ZTE complies with all U.S. export control laws and regulations.”

Mr. Howard is a Partner in Barnes & Thornburg’s Litigation Department in Washington, D.C. He is a graduate of Brown University and earned his J.D. from the University of Virginia School of Law. He previously served as the U.S. Attorney for the District of Columbia from 2001-2004. Prior to his appointment, Mr. Howard was a tenured, full professor at the University of Kansas School of Law. He has twice served as an Associate Independent Counsel under both Republican and Democrat Presidents and was an Assistant U.S. Attorney in the District of Columbia and in the Eastern District of Virginia. Howard has served as an Associate Independent Counsel on two occasions. During his first occasion serving as an Associate Independent Counsel, Howard served as a lead prosecutor for the Office of Independent Counsel (OIC) investigating questionable programs, officials and activities at the U.S. Department of Housing and Urban Development under former Secretary Samuel R. Pierce, Jr. During his second occasion serving as an Associate Independent Counsel, Howard was lead trial counsel in the fraud, false statements and gratuities investigation and trial of former Secretary of Agriculture A. Michael Espy.

The Special Compliance Coordinator’s function will be to coordinate, monitor, assess, and report on compliance with U.S. export control laws by ZTE, its subsidiaries, and affiliates worldwide. As stated in the Superseding Agreement and Order, the coordinator will operate with unprecedented access across the company.

In addition to the requirement to retain the coordinator, the Superseding Agreement and Order imposed a $1.761 billion monetary penalty, a ten-year conditionally-suspended denial order, which BIS can activate in the event of additional violations during the ten-year probationary period, and a requirement that ZTE replace the entire board of directors and the senior leadership of the company.

BACKGROUND:

On April 15, 2018, BIS activated the seven-year conditionally-suspended denial order against ZTE in response to ZTE’s admission that it made false statements to the U.S. Government during the probationary period when the company falsely stated that it would or had disciplined numerous employees responsible for the violations that led to the March 2017 settlement agreement. ZTE instead rewarded that illegal activity with bonuses. This action followed the March 2017 settlement agreement, in which ZTE agreed to a then record-high BIS civil penalty of $661 million, after engaging in a multi-year conspiracy to supply, build, and operate telecommunications networks in Iran using U.S.-origin equipment in violation of the U.S. trade embargo, and committing hundreds of U.S. sanctions violations involving the shipment of telecommunications equipment to North Korea. Moreover, ZTE also made false statements and obstructed justice by creating an elaborate scheme to prevent disclosures to and mislead the U.S. Government. In addition to monetary penalties, ZTE had agreed to a seven-year suspended denial of export privileges.

The Department of Commerce’s Bureau of Industry and Security is the principal agency involved in the implementation and enforcement of export controls for commercial technologies and many military items. The BIS Office of Export Enforcement detects, prevents, investigates, and assists in the sanctioning of illegal exports of such items.

Secretary Ross Announces $1.4 Billion ZTE Settlement; ZTE Board, Management Changes and Strictest BIS Compliance Requirements Ever

Washington – Secretary of Commerce Wilbur Ross today announced that Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun”) (collectively, “ZTE”) has agreed to severe additional penalties and compliance measures to replace the U.S. Commerce Department’s Bureau of Industry and Security (BIS) denial order imposed as a result of ZTE’s violations of its March 2017 settlement agreement.  Under the new agreement, ZTE must pay $1 billion and place an additional $400 million in suspended penalty money in escrow before BIS will remove ZTE from the Denied Persons List. These penalties are in addition to the $892 million in penalties ZTE has already paid to the U.S government under the March 2017 settlement agreement.

ZTE will also be required by the new agreement to retain a team of special compliance coordinators selected by and answerable to BIS for a period of 10 years. Their function will be to monitor on a real-time basis ZTE’s compliance with U.S. export control laws. This is the first time BIS has achieved such stringent compliance measures in any case.  ZTE is also required under the new agreement to replace the entire board of directors and senior leadership for both entities.  Finally, the new agreement once again imposes a denial order that is suspended, this time for 10 years, which BIS can activate in the event of additional violations during the ten-year probationary period. These collectively are the most severe penalty BIS has ever imposed on a company.

“Today, BIS is imposing the largest penalty it has ever levied and requiring that ZTE adopt unprecedented compliance measures,” said Secretary Ross. “We will closely monitor ZTE’s behavior. If they commit any further violations, we would again be able to deny them access to U.S. technology as well as collect the additional $400 million in escrow. The first settlement with ZTE set a record for civil and criminal penalties in an export control case.  This new settlement agreement sets another record, and brings the total penalties assessed on ZTE to $2.29 billion.”

The purpose of this settlement is to modify ZTE’s behavior while setting a new precedent for monitoring to assure compliance with U.S. law. Embedding compliance officers into the company vastly improves the speed with which the Department of Commerce can detect and deal with any violations.

BACKGROUND:

On April 15, 2018, BIS activated the suspended denial order against ZTE in response to ZTE falsely informing the U.S. Government that it would or had disciplined numerous employees responsible for the violations that led to the March 2017 settlement agreement.  ZTE instead rewarded that illegal activity with bonuses.  This action followed the March 2017 settlement agreement, in which ZTE agreed to a then record-high BIS civil penalty of $661 million, after engaging in a multi-year conspiracy to supply, build, and operate telecommunications networks in Iran using U.S.-origin equipment in violation of the U.S. trade embargo, and committing hundreds of U.S. sanctions violations involving the shipment of telecommunications equipment to North Korea.  They also made false statements and obstructed justice by creating an elaborate scheme to prevent disclosures to and affirmatively mislead the U.S. Government.  In addition to monetary penalties, ZTE had agreed to a seven-year suspended denial of export privileges, which could be activated if any aspect of the agreement was not met and/or if the company committed additional violations of the Export Administration Regulations.

The Commerce Department’s BIS is the principal agency involved in the implementation and enforcement of export controls for commercial technologies and many military items. The BIS Office of Export Enforcement detects, prevents, investigates and assists in the sanctioning of illegal exports of such items. For more information, please visit us at www.bis.doc.gov

Joint Statement of the United States and China Regarding Trade Consultations

At the direction of President Donald J. Trump and President Xi Jinping, on May 17 and 18, 2018, the United States and China engaged in constructive consultations regarding trade in Washington, D.C. The United States delegation included Secretary of the Treasury Steven T. Mnuchin, Secretary of Commerce Wilbur L. Ross, and United States Trade Representative Robert E. Lighthizer. The Chinese delegation was led by State Council Vice Premier Liu He, Special Envoy of President Xi.

There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China. To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services. This will help support growth and employment in the United States.

Both sides agreed on meaningful increases in United States agriculture and energy exports. The United States will send a team to China to work out the details.

The delegations also discussed expanding trade in manufactured goods and services. There was consensus on the need to create favorable conditions to increase trade in these areas.

Both sides attach paramount importance to intellectual property protections, and agreed to strengthen cooperation. China will advance relevant amendments to its laws and regulations in this area, including the Patent Law.

Both sides agreed to encourage two-way investment and to strive to create a fair, level playing field for competition.

Both sides agreed to continue to engage at high levels on these issues and to seek to resolve their economic and trade concerns in a proactive manner.

Ross Announces Activation of ZTE Denial Order in Response to Repeated False Statements

April 16th, Secretary of Commerce Wilbur L. Ross, Jr. announced that the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has imposed a denial of export privileges against Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun”) (collectively, “ZTE”).

In March 2017, ZTE agreed to a combined civil and criminal penalty and forfeiture of $1.19 billion after illegally shipping telecommunications equipment to Iran and North Korea, making false statements, and obstructing justice including through preventing disclosure to and affirmatively misleading the U.S. Government.  In addition to these monetary penalties, ZTE also agreed a seven-year suspended denial of export privileges, which could be activated if any aspect of the agreement was not met and/or if the company committed additional violations of the Export Administration Regulations (EAR).

The Department of Commerce has now determined ZTE made false statements to BIS in 2016, during settlement negotiations, and 2017, during the probationary period, related to senior employee disciplinary actions the company said it was taking or had already taken.  ZTE’s false statements only were reported to the U.S. Government after BIS requested information and documentation showing that employee discipline had occurred.

“ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation.” said Secretary of Commerce Ross.

These false statements covered up the fact that ZTE paid full bonuses to employees that had engaged in illegal conduct, and failed to issue letters of reprimand.

“ZTE misled the Department of Commerce.  Instead of reprimanding ZTE staff and senior management, ZTE rewarded them.  This egregious behavior cannot be ignored,” Secretary Ross said.

BACKGROUND:

Denial Orders are issued by the Assistant Secretary for Export Enforcement of the Bureau of Industry and Security, denying the export privileges of a company or individual. A denial of export privileges prohibits a person from participating in any way in any transaction subject to the EAR. Furthermore, it is unlawful for other businesses and individuals to participate in any way in an export transaction subject to the EAR with a denied person.

This is a regulatory action and is unrelated to any ongoing trade-related actions.

BIS is the principal agency involved in the implementation and enforcement of export controls for commercial technologies and many military items. The BIS Office of Export Enforcement detects, prevents, investigates and assists in the sanctioning of illegal exports of such items.

For more information, please visit us at www.bis.doc.gov.