Although the Bureau of Industry and Security announced last week that it won’t be enforcing the Biden-era AI diffusion rule, companies should reassess their due diligence practices to prepare for a replacement rule and make sure they’re complying with existing chip controls, law firms said, which they expect the Trump administration to aggressively enforce.

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The EU officially approved a new Russia sanctions package this week, targeting hundreds of ships, people and entities while adding new items to its export control list.

Members of a U.S. commission on China said they approved of the Trump administration’s AI chip agreement with the United Arab Emirates last week, but they also stressed that the deal should have stringent security guardrails in place to verify that any U.S. chips aren’t being sent on to Beijing.

The White House defended its new AI partnership framework with the United Arab Emirates, saying in a statement late May 16 that the agreement “will help ensure the global AI ecosystem will be built with American chips and use American models, all while guaranteeing significant UAE investments into the United States.”

The Bureau of Industry and Security is looking to continue moving away from proposed rulemakings and instead issue most new rules as interim final or final, said two people with knowledge of the agency’s plans.

The Office of Foreign Assets Control last week removed a former Lebanon-based small business owner from its Specially Designated Nationals List after he sued the Treasury Department over his designation in December, arguing that OFAC unfairly delayed a decision on his delisting request.

Seven Senate and House Democrats issued a joint statement May 16 criticizing the Trump administration’s reported new AI agreements with the United Arab Emirates and Saudi Arabia, saying the deals don't have “credible security assurances” to prevent U.S. “adversaries” from accessing advanced American chips.

The U.S. government needs more exemptions for close allies to quickly buy controlled defense items and weapons, both under the International Traffic in Arms Regulations and the Foreign Military Sales program, witnesses and lawmakers said during a congressional hearing on defense exports last week. Without significant ITAR and FMS reform, several lawmakers said they fear more countries will source more of their defense purchases from other countries, including potentially China.

The U.K. plans to impose swifter and more “robust” penalties on sanctions violators as part of an effort to better deter companies and others from breaching trade and financial restrictions, the country said this week.