Policy experts and former government officials speaking on a panel this week mostly agreed that the U.S. should impose sectoral-based outbound investment restrictions on China rather than individual investment sanctions on specific entities, saying a sector approach would be much simpler and more effective. And although some companies say it will be too challenging to comply with a broad investment ban on sensitive Chinese technology sectors, one expert said it will be easier than the financial industry is letting on.

A new proposed rule from the Treasury Department could make investment advisers subject to certain anti-money laundering and counter-terrorism financing requirements under the Bank Secrecy Act. The agency said the measures could close a loophole that allows sanctioned companies, including in China, to invest in U.S. companies and access sensitive technology.

Exporters and industry groups warned the Bureau of Industry and Security this month about placing new eligibility restrictions on License Exception Strategic Trade Authorization (STA) for several technologies critical to their businesses, saying that could disrupt their supply chains and saddle the agency with an influx of license requests. At least one company urged BIS to launch what it said is a much-needed review of its space-related export controls, which could benefit from the license exception but that haven’t been overhauled since 2017.

The Biden administration’s review of criteria for approving liquefied natural gas (LNG) export applications is expected to take “months, not years,” a senior Energy Department official said last week.

U.S. enforcement officials last week continued to warn about upcoming export control penalties, saying they hope those cases encourage companies to devote more resources to their compliance programs.

The Treasury Department is likely to release its draft outbound investment regulations in the next several months, setting them up to potentially take effect before year's end, said foreign investment lawyer Jonathan Gafni of Linklaters.

An investigation by the House Select Committee on China found that five U.S. venture capital firms have invested more than $3 billion in Chinese technology companies, many of which aid China’s military, surveillance apparatus and human rights violations, the committee said on Feb. 8.

The U.K. government faced pressure from Parliament this week about whether it failed to sanction companies owned by Iran’s state-backed petrochemicals firm, allowing it to evade western restrictions by maintaining accounts with at least two London banks. Members of Parliament called for an investigation and said the government may need more sanctions enforcement resources.

The Federal Maritime Commission may need to change the way it adjudicates emergency surcharge waivers requested by carriers, at least one shipping industry official said during an informal Feb. 7 FMC hearing on Red Sea shipping disruptions.

Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.