The Essentials of U.S. Sanctions on China

• Use of The Entity List and the 50% Rule to cover beneficial ownership
• Xinjiang and human rights-related designations, and the interplay with UFLPA
• CMIC sanctions
• Trump Administration Sanction Actions
• Limitations on scope
  • CMIC-listed entities only
  • U.S. facilitation of foreign investments

Understanding OFAC’s Guidance and How to Apply It

Chinese Blocking Statute

• Reporting requirement on Chinese companies
• Prohibition on compliance with “foreign law”
• Private right of action
• Identification of “extraterritorial” laws – current status
• Pending identification of “extraterritorial” laws
• Potential for aggressive enforcement compared with the EU
• Chinese Retaliation

China’s Anti-Foreign Sanctions Law

• Risk retaliatory measures for compliance with foreign sanctions in China
• Exposure to countersanctions by Beijing against persons or entities instigating or implementing sanctions
• Retaliation for U.S. and EU sanctions over Xinjiang and Hong Kong

Chinese Data Security Law

• New data security law requiring all companies in China to classify data
• New rules regarding “critical information infrastructure”
• Ambiguous classification and handling requirements
• How will these new rules be enforced?
• China’s Unreliable Entity List
• Chinese consumer backlash