The Biden administration’s potential outbound investment screening program could feature a combination of notification requirements and, in some cases, outright prohibitions on American investments in China, Treasury Secretary Janet Yellen said this week. She also offered the administration’s strongest comments to date in support of a new investment screening regime, saying there’s a “good chance” the U.S. issues the rules.

The Commerce Department published its spring 2023 regulatory agenda for the Bureau of Industry and Security and the Census Bureau, including new rules that will add more entities to the Entity List and finalize new export filing requirements.

Vadim Konoshchenok, a Russian citizen allegedly linked to Russia's Federal Security Service, appeared before the U.S. District Court for the Eastern District of New York on July 14 on charges of conspiracy related to a "global procurement and money laundering" scheme to benefit the Russian state, the U.S. Attorney's Office for that district announced. He faces a maximum of 30 years in prison.

The U.S. may need to address export control loopholes to better prevent China and others from acquiring sensitive technologies, Sen. Mark Warner, D-Va., said, but he also cautioned the U.S. against imposing controls that are too broad and said they need to be coordinated with allies.

The State Department’s recently published spring 2023 regulatory agenda continues to mention rules that will update export controls for items on the U.S. Munitions List and make other changes to the International Traffic in Arms Regulations.

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Japan plans to “compare notes” with the U.S. and other Group of 7 countries on risks posed by outbound investments, said Keiichi Ono, Japan’s senior deputy minister for foreign affairs. But Ono stopped short of saying Japan will implement new outbound screening measures, saying the country is still studying the restrictions.

Treasury Secretary Janet Yellen said she is “concerned” about China’s new export controls on critical minerals used to produce semiconductors (see 2307060053), saying the U.S. is still assessing the impact but that they “remind us of the importance of building resilient and diversified supply chains.” Speaking during a July 7 roundtable with American businesses in China, Yellen said the administration is working to make sure U.S. companies are competing with China on a “level playing field.”

Micron Techology is preparing for revenue losses caused by China’s recent sales restrictions on its products, saying in a recent Securities and Exchange Commission filing that Beijing “may prevent us from competing effectively with Chinese companies.” The U.S. semiconductor company said the restrictions are leading to “significant headwind” that “is impacting our outlook and slowing our recovery.”

Sixteen trade groups, including the U.S. Chamber of Commerce, the National Association of Manufacturers, PhRMA and BIO, asked U.S. Trade Representative Katherine Tai to press Mexico to comply with its USMCA commitments during her trip to Mexico for the Free Trade Commission meeting.