Companies will continue to see a rise in global scrutiny of foreign direct investments as European countries try to match the U.S.’s investment screening regime, which has set the standard for investment reviews, trade lawyers said. Several countries, including the United Kingdom and Germany, are quickly bolstering their regimes while the U.S. is continuing to expand its jurisdiction to keep China and sanctioned countries from acquiring critical technologies, the lawyers said.

The U.S. issued a series of increased export controls against Russia for the poisoning of Russian political opposition leader Alexei Navalny, including tighter restrictions on license exceptions and national security-controlled goods. The restrictions, first announced earlier this month (see 2103020067) but outlined in more detail in notices released March 17, will introduce new conditions and restrictions over sensitive exports to Russia and end certain U.S. arms sales to the county, the Commerce and State departments said. The restrictions take effect March 18.

The U.S. sanctioned 24 Chinese and Hong Kong officials responsible for interfering in Hong Kong’s autonomy, building on previous designations issued last year. The new sanctions, announced March 17, target 14 vice chairs of the National People’s Congress Standing Committee and officials in the Hong Kong Police Force’s National Security Division, the Hong Kong and Macau Affairs Office and the Office for Safeguarding National Security.

The U.S. should form a strong global technology alliance and promote better interagency cooperation on technology policies to better compete with China and counter its dominance at standards setting bodies, former government officials said. A modern national technology strategy must start with the White House and Congress, the former officials and experts said, which should embrace some form of industrial policy and pour resources into protecting critical technologies.

Export Compliance Daily is providing readers with the top stories for March 8-12 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.

The Office of Foreign Assets Control fined a Cleveland process controls and instrument manufacturer more than $215,000 for violating U.S. sanctions against Iran, OFAC said in a March 15 notice. The company, UniControl, Inc., exported goods to European companies despite knowing they would ultimately be sent to Iran, OFAC said. The agency said the company failed to “act on multiple apparent warning signs.”

The U.S. District Court for the District of Columbia temporarily blocked Chinese consumer electronics giant Xiaomi's designation as a Chinese military company, in a March 12 ruling. Judge Rudolph Contreras said the Department of Defense's decision to designate Xiaomi, thus forbidding U.S. citizens from purchasing Xiaomi securities, lacked substantial evidence. He said DOD provided an “inadequate” explanation as to why its decision was made and the source of authority for making the designation.

The U.S. needs to immediately modernize export controls and foreign investment screening mechanisms to counter Chinese technology advancement, a U.S. commission told Congress. The members of the National Security Commission on Artificial Intelligence, building off a report it released earlier this month, told lawmakers March 12 that the U.S. is in danger of ceding technology leadership over artificial intelligence if it doesn’t devote more resources to innovation and create a clearer national technology strategy.

The U.S. should refrain from imposing sanctions on the Houthis and others for the violence in Yemen because the restrictions would have a “disastrous” impact on the country’s commercial imports, humanitarian aid experts said. The experts applauded the Biden administration for repealing the terrorism designation of the Iran-backed Houthi rebels last month (see 2102100016) and urged policymakers to find a diplomatic solution rather than turning back to sanctions.

Don Graves, President Joe Biden’s nominee for deputy commerce secretary, said export restrictions shouldn’t be removed from Huawei and that the Commerce Department should do more to promote U.S. leadership at international technology standards setting bodies. Graves also said he is open to imposing more export controls and other restrictions against China for human rights violations.