To deter an invasion of Taiwan, the U.S. government should make it clear it will inflict “economic pain” on China if Beijing launches an attack, a researcher told the House Select Committee on China May 15.

The U.S. and Switzerland agreed this month to better share sanctions enforcement information, according to a memorandum of understanding released last week. The memorandum, signed by the Office of Foreign Assets Control and the Swiss State Secretariat for Economic Affairs, said they "express their intention to share information related to the monitoring, enforcement, and promotion of compliance with sanctions measures in force on both sides."

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.

China this week said it’s temporarily reversing April announcements that added dozens of U.S. companies to the country’s unreliable entity list, which blocked those firms from participating in import and export activities in China, and its export control list, which blocked them from receiving certain dual-use items (see 2504090017 and 2504040024). Beijing will suspend those restrictions for 90 days from May 14, the Ministry of Commerce said, according to unofficial translations.

The State Department approved two possible military sales to Turkey, the Defense Security Cooperation Agency said May 14.

The U.S. and the United Arab Emirates this week agreed to a new AI partnership framework that will improve their cooperation around critical technologies and “ensure the protection of such technologies based on a set of joint commitments,” the Commerce Department said. The framework will “facilitate deeper technology cooperation” between the two nations, Commerce said, “including the launch of a 1GW AI data center, part of a planned 5GW UAE-US artificial intelligence technology cluster in Abu Dhabi to support regional computation demand.” That effort will meet “robust US security standards and other efforts to responsibly deploy AI infrastructure, both in the UAE and globally.” The two countries will also work on a “more efficient” process for direct investments in the U.S. by UAE investment funds, Commerce said. They plan to create a working group within 30 days to “implement, monitor and assess progress” on the new framework.

Sen. Chris Murphy, D-Conn., announced May 15 that he has introduced joint resolutions of disapproval aimed at blocking $3.5 billion in arms sales to Qatar and the United Arab Emirates. He cited ethical concerns about President Donald Trump's ties to both countries.

A bipartisan group of eight House members May 15 introduced a companion to a Senate bill that would require export-controlled advanced computing chips to contain location verification mechanisms. The legislation is intended to prevent the diversion of chips to “adversaries” such as China.