US-China Trading Policy & Global Impact
US-China relations continue to experience profound structural changes and foundational shifts that affect the global economic tensions between the countries. The relationship is only expected to grow in complexity as the US and Chinese governments take legal, regulatory, and policy actions that have far-reaching effects—both within the countries and among their global partners.
Over the past several years, Washington, DC, and China have engaged in a push-pull relationship that has resulted in new rules and amendments to existing ones—many of which exacerbate global supply chain, capital flow and market access, technology cooperation/transfer, and talent mobility issues.
Similar to past actions by the United States, Australia, the United Kingdom, the European Union, and Japan, China has restructured its export controls and sanctions, foreign investment review, and policy mandates—inserting another player into the mix that adds to the already daunting myriad of requirements.
Given the United States’ current stance on China as reflected in executive orders, study mandates, and executive branch actions from the US departments of Commerce, Treasury, State, and Defense—as well as the conflict in Ukraine that could position the countries at policy odds—we expect enhanced and more complex regulations, policy updates, and sanctions impacting US-China relations for quite some time.
China is likely to continue its proactive and reactive approach by issuing laws and regulations it views as counterbalancing the requirements of the United States and other countries.
How We Can Help
We assist our clients in navigating the complex impacts of US-China tensions, including advising on the following:
- Transactional structures that minimize Committee on Foreign Investment in the United States (CFIUS) concerns
- CFIUS reviews, mitigation, and compliance
- Risk assessment/strategy for non-notified transactions
- Compliance and transactional due diligence for both regimes
- Entity List—prevention/risk assessment/delisting strategies
- Specially Designated Nationals (SDN) List and overall sanctions
- Chinese Military-Industrial Complex Companies List, including compliance and fund structuring
- US government subpoenas
- Congressional investigations
- Federal Communications Commission regulatory matters such as Team Telecom referrals and Covered List determinations
- US Customs and Border Protection Withhold Release Order (WRO) compliance
- Trade remedies, including managing Section 301 tariffs, exclusions, and related antidumping or countervailing duties (CVD) investigations
- Conflicts when multiple jurisdictions establish misaligned laws
- Risk allocation contractual clauses
- China’s new Anti-Foreign Sanctions Law and blocking statute
- Preventive assessments to avoid litigation risk
- China’s Data Security and Personal Information Protection laws
To help US, Chinese, and multinational companies navigate the complex global ramifications of the regulations and countervailing rules from both countries, we offer this centralized portal sharing our insights.
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