Although the new administration appears to be gearing up to build on U.S. outbound investment restrictions against China, President Donald Trump’s affinity toward dealmaking means that tighter rules aren’t a guarantee, an analyst said. Other analysts said the U.S. will face challenges trying to convince its allies in Asia, including Japan and South Korea, to also impose restrictions on outbound deals in China.

The Bureau of Industry and Security has paused reviews of new export license applications submitted this month, without explanation, causing concern and frustration among exporters and trade compliance officials.

The U.S. needs to expand its export controls on semiconductor manufacturing equipment to focus on "foundational" chips and not just advanced ones, policy analyst Dmitri Alperovitch said.

President Donald Trump's recent executive order halting prosecutions under the Foreign Corrupt Practices Act likely won't change the behavior of many companies, given the risk of prosecution globally or in the U.S. after Trump leaves office, lawyers said.

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.

EU lawmakers and the European Commission offered a strong rebuke this week of the U.S.’s latest export controls on advanced artificial intelligence chips, saying the restrictions could slow European AI technology innovation and set unfair buying restrictions across member states.

The first few weeks of the new Trump administration have shown that there appears to be a “fair amount of continuity” from the Biden administration on certain China trade policies, including around export controls and outbound investment restrictions, a former Biden National Security Council official said.

The U.S. should consider strengthening export controls on technology that China needs for its aerospace industry, an aviation industry expert told a U.S. commission last week, but not so much that it risks decoupling the two nations’ aviation supply chains.

The Treasury Department is expected in the near future to provide its input on legislation that lawmakers plan to propose again to restrict U.S. outbound investment in China, Rep. Andy Barr, R-Ky., said Feb. 7.

Jamieson Greer, President Donald Trump’s nominee to lead the Office of the U.S. Trade Representative, endorsed U.S. outbound investment restrictions against China during a Senate Finance Committee hearing Feb. 6.