The Treasury Department has drafted a proposed rule that could lead to new outbound investment restrictions and notification requirements on deals involving China. The rule, sent to the Office of Information and Regulatory Affairs for interagency review June 5, would build on the advance notice of proposed rulemaking issued by Treasury in August, which requested public comments on potential requirements for U.S. investments in China's quantum technology, artificial intelligence and semiconductor industries (see 2308090066). Commerce Secretary Gina Raimondo said in May that the administration hopes to finalize the new rules by the end of this year (see 2405080039).

Lawmakers are proposing dozens of export control-, sanctions- and foreign investment-related amendments to the House version of the FY 2025 National Defense Authorization Act (NDAA), including measures aimed at China, Iran and Russia.

The House of Representatives voted 247-155 on June 4 to pass a bill that would sanction International Criminal Court (ICC) officials if they issue arrest warrants for Israeli leaders over the war in Gaza.

U.S. in-house attorneys need to be more vigilant than ever when investigating possible export control violations, lawyers said this week, adding that the risks of a possible civil or criminal penalty for a subpar internal investigation, or for not disclosing a violation quickly enough, are rising.

The U.S., Japan and South Korea committed to working more closely on “economic security” and supply chain issues, according to a readout of a Camp David meeting between the three countries’ foreign ministers last week. The officials said they want to collaborate more on “Minerals Security Partnership projects” and are committed to “accelerating cooperation on critical and emerging technologies,” including through joint research projects.

The Commerce Department is investigating Ronda Korea, a manufacturer of parts for semiconductor equipment, and other South Korean equipment makers for possibly violating U.S. export controls by selling to restricted Chinese companies, The Information said in a May 30 report. The agency is specifically probing Ronda Korea for potentially selling parts to “sanctioned” Chinese companies using technology developed by Lam Research, a U.S. chip equipment maker, the report said. A Bureau of Industry and Security spokesperson didn’t respond to our request for comment.

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U.S. lawmakers should finish pending legislation to restrict outbound investment to China so it doesn't leave the job of controlling such capital flows solely to the executive branch, a congressionally mandated commission heard last week.

The U.S. government should explore the possibility of prohibiting inbound Chinese foreign direct investment in a few sensitive high-sectors to ease the workload burden on the Committee on Foreign Investment in the U.S., a congressionally mandated commission heard last week.

A December executive order that gave the U.S. broader authority to sanction financial institutions involved in shipping goods to Russia has had a “meaningful impact” on Russia’s military industrial supply chains so far, Treasury Secretary Janet Yellen said this week.