House lawmakers submitted a host of proposed export control- and sanctions-related amendments as part of the FY 2024 National Defense Authorization Act, including measures that could ease defense technology sharing restrictions, harmonize the Entity List with certain U.S. sanctions and investment restrictions and place new export control requirements on items destined to China and Iran. Other amendments could lead to new sanctions on Chinese technology companies and government officials, add the USDA to the Committee on Foreign Investment in the U.S., establish a new sanctions coordination office in the State Department and more.
Republican presidential candidate Nikki Haley said she would block all exports of sensitive technology to China and put in place new investment restrictions on Chinese purchases of agricultural land if she is elected to the White House. Haley, the former U.N. ambassador during the Trump administration who announced her 2024 presidential candidacy earlier this year, said President Joe Biden is “not up to the task” of protecting U.S. national security from risks posed by China and previewed several new policies that could cut off a range of trade between the two countries.
The Treasury Department should “assess” whether the Committee on Foreign Investment in the U.S. has the jurisdiction to review the Saudi-backed LIV Golf’s purchase of the PGA Tour, two Democrats said in a June 16 letter to Treasury Secretary Yellen. Sen. Sherrod Brown, chair of the Senate Banking Committee, and Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, said that if CFIUS has jurisdiction over the deal, the committee should “resolve any national security risks related to the transaction.”
Treasury Secretary Janet Yellen declined to say this week whether the Committee on Foreign Investment in the U.S. would look into the Saudi-backed LIV Golf’s purchase of the PGA Tour despite several lawmakers urging CFIUS to review the deal. Yellen, speaking during a June 13 House Financial Services Committee hearing, said she couldn't comment on a potential review because there are “very strict rules of confidentiality,” but suggested the committee would review the acquisition if it implicated U.S. national security.
Considerations surrounding the Committee on Foreign Investment in the U.S. “should be baked into deal planning as early as possible,” especially as CFIUS scrutiny on Chinese investments is “not expected to ease any time soon,” Kilpatrick Townsend said in a June client alert. The firm said compliance officers whose company is pondering foreign investment from China need “to involve your regulatory teams as soon as possible” so the company can “identify the challenges likely to surface during the CFIUS process.”
Republican Sens. Marco Rubio of Florida and John Cornyn of Texas reintroduced a bill this week to expand U.S. foreign investment reviews to cover companies “working with genetic information.” The Genomics Expenditures and National Security Enhancement Act, originally introduced in 2021 (see 2105250022), would direct the Committee on Foreign Investment in the U.S. to “rewrite its regulations” to require mandatory filings for any foreign investments that involve genetic information. CFIUS would be required to consult with the Department of Health and Human Services on any deal that involves a “genetic data transaction,” and would be required to include the Senate’s Select Committee on Intelligence and the Foreign Relations Committee in its briefings.
Technology academics and industry officials this week cautioned Congress about potential U.S. export controls over quantum technologies and research, saying new restrictions without clear guidance could hamper U.S. competitiveness and innovation. But one current government official suggested the administration needs to be more “proactive” in protecting the most sensitive research from being stolen.
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.
The Committee on Foreign Investment in the U.S. is open to working with lawmakers on a bill that could block China, Russia, Iran and North Korea from investing in American land or agricultural companies, said Paul Rosen, the head of CFIUS. While Rosen didn’t explicitly endorse the Promoting Agriculture Safeguards and Security Act, suggesting that CFIUS would need more resources if its jurisdiction were broadened, he said the legislation raises valid concerns.
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.