President Joe Biden issued a new executive order expanding a Trump-era policy that banned investments in Chinese military companies (see 2105190009). The order, issued June 3, includes an initial list of 59 entities and expands the scope of the restrictions to cover companies operating in China’s surveillance technology sector, which the White House said produces technologies to commit human rights violations against Muslim minorities.

A congressional commission said the Commerce Department has “failed” to carry out its export control responsibilities over emerging and foundational technologies, which is hindering the work of other government bodies and allowing some sensitive dual-use technologies to be freely exported from the U.S. The commission said Commerce’s Bureau of Industry and Security, which is in charge of the export control effort, has taken “limited action to strengthen or introduce new controls” since its 2018 congressional mandate and should look to other agencies to help with the process.

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Trade and business relations between the European Union and China will likely grow more challenging in the wake of the EU’s decision to pause ratification of the Comprehensive Agreement on Investment (see 2105240023), a European policy expert said. Even so, China will likely push the EU to move forward on the deal, another expert said, as it doesn’t want a series of escalating sanctions by the two sides to continue.

The U.S. and Iran will likely come to an agreement on the Iran nuclear deal as early as this summer, which could lift a range of economic sanctions on Iran, two foreign policy experts said. Although talks between the two sides have progressed over the past several weeks, the experts say it remains unclear how the sanctions will be lifted and whether a more comprehensive, revised deal will follow.

The Bureau of Industry and Security added eight entities to the Entity List for their involvement in nuclear proliferation activities and issued several other revisions, one correction and one removal from the Entity List and Military End User List. The eight entities, located in Pakistan and the United Arab Emirates, include laboratory equipment providers, engineering companies and electronics makers. They will face a license requirement for all items subject to the Export Administration Regulations, and BIS will impose a license review policy of presumption of denial. No license exceptions will be available. The changes take effect June 1.

The Treasury Department’s upcoming budget proposal will ask for more money to address sanctions evasion practices, Treasury Secretary Janet Yellen told a House Appropriations subcommittee May 27. Yellen said the agency is focused on limiting evasion tactics and is hoping to collaborate more with allies to address those issues and increase the overall effectiveness of economic sanctions.

Export controls over 3D-printed guns were moved from the Commerce Department to the State Department following a court’s decision this week to officially waive a preliminary injunction that had blocked the transfer (see 2105030021).

The U.S. National Security Council is hoping to better harmonize export controls and foreign investment restrictions across the Five Eyes alliance, an effort that will be a key aspect of President Joe Biden’s future talks with European and other allies, a senior NSC official said. The U.S. is also reviewing how government agencies use those tools to better address a rise in export control evasion tactics, the official said.

The State Department released a proposal May 26 to permanently allow employees involved in International Traffic in Arms Regulations-related activity to work remotely, a long-awaited measure that industry is expected to welcome. The rule proposes to permanently update the ITAR’s definition of a “regular employee,” which will also now include certain “contractual staff.”