The U.S. and its allies are planning a “renewed effort” to counter Russia’s sanctions evasion tactics, Treasury Deputy Secretary Wally Adeyemo said this week, speaking during a Feb. 21 event hosted by the Council on Foreign Relations. He said part of the effort will include new sanctions and export controls, more enforcement cooperation with allies and more direct conversations with companies that are still doing business with Russia.

Sen. James Lankford, R-Okla., introduced two bills last week that could impose new sanctions and export controls against Iran. The Deterring Iranian Support for Russia in Ukraine and Pre-empting Terrorism Act (Disrupt Act) would require sanctions on Iranian entities that provide military support for Russia’s war in Ukraine and would prevent the president from lifting sanctions on those entities unless Iran “ends its support” of Russia. The Sanctioning Transfers and Outbound Products to Iran Act (Stop Iran Act) would require the Commerce Department to increase export restrictions on Iranian entities that support terrorist activities and would better prevent U.S.-made products and components, including semiconductors, from being used to support Iranian terrorism, Lankford said.

Dutch chip company ASML may have violated export controls stemming from a data theft incident involving a now former employee, the company said in its 2022 annual report released this week. The semiconductor company also said it’s expecting the Netherlands to impose new export restrictions on advanced chip-related items to China but doesn’t expect the measures to take effect for “many months.”

An agreement among the U.S., Japan and the Netherlands to restrict exports of advanced chip-related items to China could “cause serious harm” to Chinese chip companies and “long-term damages to the interests of consumers” around the world, the China Semiconductor Industry Association said in a Feb. 15 statement, according to an unofficial translation. The association said the new restrictions, which the three countries reportedly agreed to last month (see 2301270002), risk “destroying the existing global semiconductor ecology. CSIA opposes the act of interfering in global trade liberalization, distorting the balance of supply and demand” and attempts to “exclude China’s semiconductor industry from the global innovation system and free competition market.”

The U.S., the EU and others can take steps to improve how they administer export controls, deliver guidance to industry and more efficiently target dangerous end users, experts said this week. One expert specifically called on the U.S. to revise the Entity List, which should better isolate the worst export control offenders.

The U.S. should further regionalize its supply chains to reduce dependency on China and other countries in case of future global trade disruptions, some experts said during a virtual conference this week hosted by the Washington International Trade Association. But at least one expert disagreed, saying global supply chains reduce risks, not exacerbate them.

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The Commerce Department is trying to find a way to screen outbound investments in a way that protects domestic commercial interests but limits collateral damage to businesses with interests outside the U.S., said Marisa Lago, the agency’s undersecretary for international trade. Lago’s comments came one day after Samm Sacks, an expert on U.S.-China technology policy issues, said the Biden administration hasn’t yet released an executive order to create an outbound investment screening regime because of discussions surrounding implementation challenges.

The U.S. is making “good progress” on aligning export controls over sensitive technologies with allies, Deputy Secretary of State Wendy Sherman said this week, adding that almost all the administration's recent discussions with trading partners have involved China technology issues. She also said the agency is working to counter a growing oil partnership between China and Iran, but said preventing China’s purchases has proven challenging.

The Biden administration’s implementation of its new China chip export controls (see 2210070049) has been “mixed,” and it remains unclear how far allies will go to impose similar restrictions, said Clete Willems, who was a National Security Council official during the Trump administration. Willems, in written testimony this week to the House Financial Services Committee, said he doesn’t understand why the administration didn’t initially coordinate the October export control rule with allies, a shortcoming that could be hurting U.S. companies now.