A new interim final rule released by the Bureau of Industry and Security this week introduces a 50% ownership threshold rule for the Entity List and Military End-User List, a change that’s expected to drastically increase the number of companies subject to stringent export licensing restrictions. BIS also is adopting the rule, which it calls the “Affiliates rule,” for export transactions involving certain parties sanctioned by the Office of Foreign Assets Control, which BIS said will “align more closely” OFAC’s 50% rule with the new restrictions under the Export Administration Regulations.

Nvidia CEO Jensen Huang made the case last week for fewer export controls on the company’s chips, saying the U.S. government should allow Nvidia to “compete” in the Chinese market. He also avoided directly answering whether the company’s export license applications for China are being granted, despite the Trump administration announcing earlier this year that it planned to approve exports of Nvidia’s H20 chips in exchange for a cut of the sales revenue (see 2508220003).

European officials and Parliament members called on EU member states to double down on Russia-related sanctions implementation and enforcement, saying they know evasion is occurring, but countries have been too slow to act on sanctions rules or haven’t levied large enough penalties. They also expressed frustration that the EU hasn’t yet been able to confiscate frozen Russian assets for Ukraine, even as the European Commission said it’s preparing a proposal that would allow the bloc to indirectly use those funds while still complying with international law.

U.S. export controls on chips are working and should be maintained, not swapped in a trade deal as part of a “grand bargain” between the Trump administration and Beijing (see 2507150013 and 2508010002), said Rush Doshi, former National Security Council official during the Biden administration.

The Trump administration’s easing of export restrictions for certain unmanned drones was an overdue decision that could allow American companies to better compete in foreign markets and boost U.S. cooperation with allies, a defense policy researcher and former Pentagon official said Wednesday. During a Center for Strategic and International Studies webinar, they said the announcement highlights the shortcomings of the multilateral Missile Technology Control Regime (MTCR), arguing that it and other U.S. arms control policies have failed to keep up with the pace of technology.

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Although there remains a “contentious” debate around how exactly the U.S. should impose export controls on high-end AI chips, White House adviser Jacob Helberg said he believes the Trump administration will find a way to restrict the most sensitive technologies while still making sure the rest of the world relies on AI hardware, software and models exported from the U.S., not from China. Helberg said he expects the administration to provide clearer answers in the coming months.

ShapeShift, a defunct Swiss cryptocurrency exchange that operated out of Colorado, will pay $750,000 to the Office of Foreign Assets Control to resolve allegations that it violated sanctions against Cuba, Iran, Sudan and Syria. OFAC said the exchange had no sanctions compliance program and illegally allowed users in those countries to use its platform for digital asset transactions.

Chinese semiconductor company Yangtze Memory Technologies Corp. accused the Bureau of Industry and Security of illegally withholding documents related to its placement on the Entity List, adding that the government acted on "inaccurate" information from YMTC competitors when it imposed stringent export license requirements on the company in 2022. The firm also questioned whether the End-User Review Committee, the interagency group that makes decisions on adding or removing companies from the Entity List, followed proper protocol when it voted to put YMTC on the list.

Shipping industry officials last week called for a uniform, global set of rules and sanctions to address a rise in shadow fleet vessels, saying those tankers are presenting increasing safety and security risks for the maritime industry.