On December 17, 2024, American Active Anode Material Producers, a trade association consisting of domestic manufacturers of certain active anode materials, filed petitions with the US Department of Commerce (DOC) and the US International Trade Commission (ITC) seeking the imposition of antidumping (AD) and countervailing duties (CVD) on imports of such materials from China. The proposed tariffs could result in significant cost increases for electric vehicle (EV) production, as the active anode materials make up a substantial portion of battery costs, and may raise questions as to the availability of US domestic supply to meet domestic EV production needs.
The EU Strengthens Sanctions Against Russia with 15th Package of Restrictive Measures
On 16 December 2024, the European Union (EU) adopted its 15th package of sanctions against Russia in response to its ongoing aggression toward Ukraine. The new measures target key sectors of Russia’s military-industrial complex, including the “shadow fleet” and companies that support this complex.
In a significant development, the EU has imposed fully-fledged sanctions – a travel ban, an asset freeze and prohibitions to making economic resources available – for the first time on third-country actors, including Chinese companies, that are implicated in the supply of electronic components and drones used in the conflict. These actions reflect the EU’s determination to extend its pressure on those facilitating Russia’s military activities.
Key Updates on the Enhanced Due Diligence and Circumvention Requirements Under Council Regulation 833/2014
On 11 December 2024, the European Commission issued important updates to its Consolidated FAQs on the implementation of Council Regulation No 833/2014 and Council Regulation No 269/2014 (FAQs). These updates cover multiple topics, including due diligence requirements, circumvention and the introduction of a new chapter dedicated specifically to enhanced due diligence for operators involved in manufacturing or trading with common high priority (CHP) items.
CFIUS Clearance: Koito Manufacturing Co., Ltd. (Japan) and Cepton, Inc. (U.S.)
Status: Clearance
Acquirer: KOITO MANUFACTURING CO., LTD. (Japan)
Acquired: Cepton, Inc. (U.S.)
Value: Unknown
Industry Tags: Autonomous Vehicles; Lidar; Automotive
US Outbound Investment Regulations to Take Effect on January 2, 2025
On October 28, 2024, the Department of the Treasury’s (Treasury) Office of Investment Security issued a final rule[1] (“Final Rule” or “Outbound Investment Regulations”) containing the regulations that will implement, effective on January 2, 2025, an outbound investment regulatory regime that captures certain types of US person-involved investments in, or with, Chinese interests if the investment involves any of three key technology areas: quantum information technologies, semiconductors and microelectronics, and certain artificial intelligence (AI) technologies. US and non-US companies involved in or planning to participate in one or more of the key technology areas must be intimately familiar with the scope and application of these regulations to avoid liability. The regulations create new due diligence obligations on such businesses, and non-compliance is subject to the same severe penalties as Office of Foreign Asset Control (OFAC) sanctions violations. This publication provides a summary of the Outbound Investment Regulations established by the Final Rule, and offers considerations for enterprises potentially affected by the new regulatory program.
New Antidumping and Countervailing Duty Petitions on Overhead Door Springs from China and India
On October 29, 2024, IDC Group, Inc., Iowa Spring Manufacturing, Inc., and Service Spring Corp. (Petitioners), domestic producers of overhead door counterbalance torsion springs (overhead door springs), filed petitions with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) seeking the imposition of antidumping duties (AD) and countervailing duties (CVD) on imports of overhead door springs from China and India. Overhead door springs are typically used to raise and lower overhead doors such as garage doors, warehouse doors, and gates.
New Antidumping and Countervailing Duty Petitions on Hard Empty Capsules from Brazil, China, India, and Vietnam
On October 24, 2024, Lonza Greenwood LLC (Petitioner or Lonza), domestic producer of hard empty capsules (HECs), filed petitions with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) seeking the imposition of antidumping duties (AD) and countervailing duties (CVD) on imports of HECs from Brazil, China, India, and Vietnam. HECs refer to two-piece unfilled cylindrical shells that are composed primarily of a non-toxic, biodegradable, biocompatible, and water soluble polymer material, used by the pharmaceutical and nutraceutical industries.
The stony road to de-fragmentation of EU Foreign Direct Investment Control (FDI)
On 9 September, Mario Draghi published a report on ‘The Future of European Competitiveness’ highlighting the need for the EU to strengthen its Investment Screening Mechanism. The report was part of a broader effort to assess and strengthen the EU’s economic and strategic resilience in response to rising global competition and geopolitical challenges. Draghi’s report emphasized the EU’s vulnerability in key sectors such as technology, energy, and critical infrastructure. Draghi’s report underscores the importance of national security screening and the EU’s need for resilience with several key statements. At present, FDI screening is a national competence, with Member States only required to exchange notifications and information.
Navigating DoD’s CMMC Program Final Rule
On October 15, 2024, the U.S. Department of Defense (DoD) released its final rule to establish the Cybersecurity Maturity Model Certification (CMMC) Program (Final CMMC Program Rule). The CMMC Program allows the DoD to verify that defense prime contractors and subcontractors (defense contractors) have implemented security safeguards for Federal Contract Information (FCI) and Controlled Unclassified Information (CUI) and are maintaining required safeguards during the contract period of performance. The CMMC requirements apply to defense contractors that process, store or transmit FCI or CUI in the performance of a DoD contract or subcontract.
New Antidumping and Countervailing Duty Petitions on Paper File Folders from Cambodia and Sri Lanka
On October 21, 2024, Smead Manufacturing Company, Inc. and TOPS Products LLC, collectively, the Coalition of Domestic Folder Manufacturers (Petitioner or Coalition) filed petitions with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) seeking the imposition of antidumping duties (AD) on imports of paper file folders from Cambodia and Sri Lanka, and countervailing duties (CVD) on imports of paper file folders from Cambodia. The Coalition members are both domestic producers of paper file folders.
