Expect US-China Trade Controls to Be 'Frequent and Volatile,' Law Firm Says
Companies should expect new export controls from both the U.S. and China to “remain frequent and volatile,” especially around advanced technologies and critical minerals, Eversheds Sutherland said in a client alert this month. The firm pointed to U.S. controls on certain chip equipment in December (see 2412020016) followed by China’s response, which included new export restrictions on certain key critical minerals and other dual-use items being shipped to the U.S. for military uses (see 2412030022).
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Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The firm said businesses “must closely follow these changes in trade policy and be ready to adapt accordingly.” It also noted that both countries are imposing their controls extraterritorially, including through the U.S. foreign direct product rule and the Chinese equivalent of that rule. Businesses working with U.S. or Chinese supply chains “will have to navigate the implications and apply enhanced due diligence in their procurement and distribution arrangements, including ensuring that their new and existing vendors are authorized under a valid license to supply the inputs required, and their customers provide accurate end-use and end-user information for assessment and license applications,” the firm said.