As global economic and geopolitical environments enter a new era, companies need to continuously develop and adjust their coherent global business strategies to secure and further expand business opportunities in all markets while minimizing political and legal risks by ensuring compliance. To assist you with that task, Mayer Brown’s US-China Trade Monthly provides news and insights related to the latest US developments impacting the US-China bilateral trade relationship. In the current issue, we will discuss: (1) The Department of Commerce’s Bureau of Industry and Security (BIS) issuing a Temporary Denial Order suspending the export privileges of three US companies; (2) OFAC releasing three Frequently Asked Questions providing additional guidance on the sanctions of Chinese Military-Industrial Complex Companies.

BIS Takes Enforcement Action Against US Companies Under Investigation For Export of Technical Drawings to China

On June 7, the Department of Commerce’s Bureau of Industry and Security (“BIS”) issued a Temporary Denial Order (“TDO”) suspending the export privileges of three US companies, Quicksilver Manufacturing, Inc.; Rapid Cut, LLC; and US Prototype, Inc., for 180 days due to the export of technical drawings and 3D graphic and computer aided drawing files for controlled items to China. The TDO, which may be extended, blocks all three companies from participating in any transaction involving a commodity, software, or technology exported from the US that is subject to the Export Administration Regulations (“EAR”). As BIS noted, TDOs are one of “the most significant civil sanctions BIS can issue, cutting off not only the right to export items subject to the EAR from the US, but also to receive or participate in exports from the US or reexports of items subject to the EAR.”

Read more >>

Additional Guidance Provided Regarding Investments in Chinese Military-Industry Complex Companies

On June 1, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) released three Frequently Asked Questions (“FAQs”) providing additional guidance on the sanctions of Chinese Military-Industrial Complex Companies (“CMIC”).

Read more >>

Has this message been forwarded to you? Subscribe to receive legal updates direct to your inbox.