Global Trade and Investment
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Russia Issues New Authority to Suspend Voting Rights of Some International Investors in Major Russian Companies02/14/2023
The Russian government continues to take measures to curtail the rights of investors from or connected to “unfriendly jurisdictions” (i.e., countries that have introduced sanctions on Russia and Russian persons) (“Western Investors”) without definitively expropriating their assets.
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Economic Crime (Transparency and Enforcement) Act Provides Transitional Period01.13/Alert
The Economic Crime (Transparency and Enforcement) Act which came into force last year provides a transitional period ending on January 31, 2023, during which overseas entities that own (or want to sell or transfer) or lease UK real estate must register the beneficial owners or managing officers of that overseas entity at Companies House. A failure to comply with the Act will expose the overseas entity and its officers to criminal sanctions and could potentially impact banks who have lent monies secured on the property.
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FCC Modifies Equipment Authorization Rules for Certain Chinese Manufacturers11.28/Alert
The FCC seeks further comment on the revocation of existing equipment authorizations issued to manufacturers on FCC Covered List.
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State Department Issues Two Open General Licenses Authorizing Reexports and Retransfers of Certain Defense Articles for Australia, Canada and the UK07.27/Alert
On July 13, 2022, as part of a new pilot program, the Department of State’s Directorate of Defense Trade Controls (DDTC) issued two open general licenses (OGLs) permitting certain reexports and retransfers of unclassified defense articles subject to the International Traffic in Arms Regulations (ITAR) within or between Australia, Canada, and the United Kingdom.
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Expropriations Related to the Russia Sanctions May Trigger Liability under Investment Treaties03/15/2022
Expropriations Related to the Russia Sanctions May Trigger Liability under Investment Treaties
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Companies Prepare for the Uyghur Forced Labor Prevention Act (UFLPA)01.18/Alert
The year 2021 brought supply chain challenges to the center of the national conversation. In 2022, legal developments look to focus the attention of the business community on ethics in the supply chain and introduce new due diligence and compliance challenges.
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DOJ Continues Targeting of Corruption through AML Laws and Alternate Statutes – Lessons for Compliance and Due Diligence07.13/Alert
As the Biden Administration commits to crack down on corruption, recent enforcement actions show the DOJ continues a longstanding trend of relying on AML laws and other alternate statutes to prosecute corruption cases, with lessons for internal compliance and due diligence.
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Congressional SPACtivity Continues: Draft Legislation Proposes to Eliminate Safe Harbor Protection for Projections in SPAC Transactions05.28/Alert
As previously noted in Pillsbury’s earlier article, one factor that has contributed to the rise in SPACtivity has been the availability to SPACs of certain features unavailable to companies going public through traditional IPOs, most notably the Private Securities Litigation Reform Act (PSLRA) safe harbor for forward-looking statements. On May 21, 2021, the U.S. House Committee on Financial Services released draft legislation to amend the Securities Act of 1933 (the Securities Act) and the Securities Exchange Act of 1934 (the Exchange Act) to exclude all SPACs from the safe harbor. Section 27A of the Securities Act and Section 21E of the Exchange Act currently exclude from the safe harbor forward-looking statements made “… in connection with an offering of securities by a blank check company…” Rule 419 under the Securities Act defines a “blank check company” as “…a development stage company that has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person… ” and is “ … issuing penny stock ...” As the vast majority of SPACs do not issue penny stock or are structured to avoid treatment as a “blank check company” as defined in Rule 419, de-SPAC transactions have generally been viewed as eligible for the PSLRA safe harbor. The draft legislation proposes to delete the term “blank check company,” replacing it with the phrase “… a development stage company that … has indicated that its business plan is to acquire or merge with an unidentified company, entity, or person…” without reference to whether or not the company issues penny stock. As a SPAC is formed for the purpose of acquiring or merging with an unidentified entity, the proposed amendments would likely make the PSLRA safe harbor unavailable for forward-looking statements, such as projections, included in documents soliciting stockholder approval of de-SPAC transactions.
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DoD Issues Proposed Rule on Enhanced Debriefing Procedures05.24/Alert
The Department of Defense (DoD) recently issued a proposed rule to implement Section 818 of the FY18 NDAA. Under Section 818, Congress required the DoD to issue new regulations in the Defense Acquisition Regulation Supplement (DFARS) on the procedures for enhanced debriefing rules within six months.
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China Publishes New Draft Regulations on Data Security Management of Automobile Operators to Protect Privacy05.20/Alert
On May 12, 2021, the Cyberspace Administration of China (CAC) published the Several Regulations on the Management of Automobile Data Security (Draft for Comment) (Draft Regulations). The Draft Regulations are open for public comment until June 11, 2021. According to the CAC’s statement, due to growing concerns over personal data security and privacy protection in the People’s Republic of China (PRC), the Draft Regulations aim to strengthen protection of personal information and important data in automobile-related activities, as well as safeguard national security and the public interest. Below is our summary of the highlights of the Draft Regulations.
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Congress Moves to Repeal OCC’s “True Lender” Rule05.20/Alert
On May 11, 2021, the Senate voted to repeal a Trump Administration regulation that defines which party is the “true lender” in partnerships between banks and non-banks, including financial technology and other non-bank lending companies. The Senate resolution now heads to the House of Representatives, which is expected to pass the resolution. President Biden has signaled his support for the repeal and will likely enact the repeal following a vote in the House. The repeal of this rule could create regulatory uncertainty for fintechs and other non-bank lenders that were relying on the rule.
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China’s MOFCOM Issues Internal Export Control Program Guidelines05.12/Alert
On April 28, 2021, China’s Ministry of Commerce (MOFCOM) published The Guiding Opinions on the Establishment of an Internal Compliance Program for Export Control by Exporters of Dual-use Items (Opinions) along with a 35-page Guidelines for Internal Compliance of Export Control of Dual-use Items (Guidelines). The Opinions and Guidelines replace MOFCOM’s previous Opinions published in 2007 and are the latest steps taken by MOFCOM for the implementation of China’s Export Control Law effective on December 1, 2020 (see Pillsbury alert).
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China Cancels Export Tax Rebate on Steel Products05.11/Alert
On April 28, 2021, China’s Ministry of Finance (MoF) and the State Administration of Taxation (SAT) issued a short notice (Notice No. 16) on their official websites to cancel VAT rebates on the exports of certain steel products starting May 1, 2021.
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Data Privacy Fines and Damages “Double Jeopardy”: UK Supreme Court Hears Google “Class Action”04.29/Alert
This week sees a key hearing before the UK Supreme Court in the case of Lloyd v Google, an event long awaited by those familiar with data protection law proceedings in Europe.
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Federal Support for Defense Uses of Advanced Nuclear02.03/Alert
Summary of the EO
On January 12, 2021, former President Trump issued an EO on Promoting Small Modular Reactors for National Defense and Space Exploration. The EO directs the Department of Energy (DOE), Department of Defense (DOD), and NASA to take actions to coordinate their nuclear-related activities, move forward with certain ongoing nuclear projects and promote advanced reactor and small modular reactor (SMR) technologies. The purpose of the EO is to take steps to revitalize the U.S. nuclear sector, reinvigorate the U.S. space exploration program, develop diverse energy options for national defense needs and advance U.S. technological supremacy and leadership.
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Congressional and Government Investigations in 2021: What to Expect from the Biden-Harris Administration and How to Prepare01.27/Alert
Government investigations pose many risk management challenges. They are unpredictable, political and often public. If handled incorrectly, they can last for many years, spiral into multiple Congressional, criminal, and/or regulatory investigations at the state and federal levels, and generate serious reputational harm. Potential targets can take proactive steps to mitigate their risks.
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China Publishes Import License List and Export Control List for Commercial Encryption12.16/Alert
One day after China’s new Export Control Law took effect, on December 2, 2020, China’s Ministry of Commerce (MOFCOM), the State Cryptography Administration (SCA) and the General Administration of Customs (GAC) jointly issued an Announcement on the Issuance of Import Licensing List, Export Control List and Related Administrative Measures for Commercial Encryption (Encryption Announcement) to restrict commercial encryption products and related technology. The Encryption Announcement takes effect on January 1, 2021, and includes: (1) a list of commercial encryption items subject to import licensing requirement (Encryption Import List); (2) a list of commercial encryption items subject to export control (Encryption Export List); and (3) procedures for the application of import and export licensing of commercial encryption (Encryption Licensing Procedures).
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Indian Government Announces New Opportunities for Defense Contractors and Investors10.22/Alert
The Indian government is amending its procurement policy and increasing foreign direct investment in the defense sector, both developments which we believe will be of interest to many of our government contracts clients. India is the second largest arms importer in the world and spends close to two percent of its GDP on defense. In addition, recent border skirmishes with China and Pakistan have heightened the urgency for India to shore up its defense arsenal.
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China’s Export Control Law Formally Enacted10.22/Alert
After submission for review and discussion at the 22nd session of the Standing Committee of the 13th National People’s Congress of the People’s Republic of China (PRC), the final version of the long-awaited Export Control Law of the PRC was passed and enacted on October 17, 2020, with an effective date of December 1, 2020.
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Understanding the New $60 Billion U.S. International Development Finance Corporation (DFC)08.17/Alert
At the start of 2020, the U.S. International Development Finance Corporation (DFC) finally became operational after more than a year of organizational and budgetary delays. Signed into law as a part of the 2018 BUILD Act, the DFC is a $60 billion investment agency that merged the Overseas Private Investment Corporation (OPIC) with other foreign investment programs and added new objectives. DFC has a broader development objective than OPIC’s mission and offers increased services to lower- and middle-income economies, with nearly 100 countries identified as priority areas.
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Senate Bill Could Result in De-Listing of Certain Chinese Companies and Non-Chinese State-Owned Enterprises from U.S. Securities Exchanges06/03/Alert
On May 20, 2020, the U.S. Senate unanimously passed S. 945, the Holding Foreign Companies Accountable Act (HFCAA). If enacted, the bill would amend the Sarbanes-Oxley Act of 2002 (15 U.S.C. §7214) to require additional disclosures from certain issuers regarding foreign jurisdictions that prevent the Public Company Accounting Oversight Board (PCAOB) from performing inspections of auditors of public companies.
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Registration and Compliance Obligations are Reality for Private Funds in the Cayman Islands03.31/Alert
For many years regulators and other government officials in the Cayman Islands have worked closely with tax and regulatory authorities and others in non-Cayman jurisdictions to minimize the risk that bad actors would use Cayman jurisdictional means to evade taxes, launder money or engage in other illegal conduct. The Cayman Islands Government has incurred great expense to establish, implement or improve systems designed to facilitate international law enforcement and crime prevention. As a result of those and other important efforts by the Cayman Islands Government, reforms in the Cayman Islands have been among the most significant of any nation.
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Substantial Transformation of the FAR Trade Agreements Clause02.13/Alert
BACKGROUND
The Buy American Act is the basic source of restrictions on the federal government’s purchases of foreign-produced products. As implemented through a Presidential executive order and regulations, the law imposes a “price preference” for purchases of U.S. origin goods, which can be 6% (for non-Defense procurements) to 50% (for Defense procurements). The application of the Buy American Act is modified when the United States is obligated by an international agreement—either the World Trade Organization (WTO) Government Procurement Agreement (GPA) or a free trade agreement such as the NAFTA—to accord non-discriminatory treatment to the goods of specific foreign countries. In those cases, when the procurement is being made by a covered agency and the value of the procurement is above the applicable threshold, no price preference is applied and the foreign good is evaluated in the same manner as U.S. goods. Those modifications are implemented under the authority of the TAA, which implements U.S. obligations under trade agreements. -
U.S. Expands Secondary Sanctions to Iran’s Industrial Sectors01.17/Blog
On January 10, 2020, the United States imposed additional sanctions on Iran in the wake of recent tensions between the countries and the continuing broader “maximum pressure” campaign on Iran. Specifically, President Trump signed Executive Order 13902 (E.O. 13902) authorizing the imposition of secondary sanctions on certain transactions involving Iran’s construction, mining, manufacturing, and textiles industries. This follows Executive Order 13871 from May 2019, which authorized secondary sanctions on Iran’s iron, steel, aluminum and copper sectors. Concurrently with the issuance of E.O. 13902, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) added to the Specially Designated Nationals and Blocked Persons List (SDN List) several major Iran-related metal and mining companies, Chinese and Seychelles entities plus a related vessel involved in the Iranian metals trade, and Iranian regime officials.
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Compliance in 2020 – Key Takeaways from the ITAR Cloud Rule01.16/Blog
On December 26, 2019, the Department of State published in the Federal Register an interim final rule amending the International Traffic in Arms Regulations (ITAR) to define “activities that are not exports, reexports, retransfers, or temporary imports,” and specifically to clarify that the electronic transmission and storage of properly secured unclassified technical data via foreign communications infrastructure does not constitute an export. The rule also defines “access information” and revises the definition of “release” to address the provision of access information to an unauthorized foreign person.
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Key Takeaways from CFIUS Final Rules Implementing FIRRMA01.15/Blog
On January 13, 2020, the U.S. Department of the Treasury issued two final rules for the Committee on Foreign Investment in the United States (CFIUS) implementing the Foreign Investment Risk Review Modernization Act (FIRRMA), which was enacted on August 13, 2018. The final rules largely adopt the proposed rules published on September 17, 2019, with several key clarifications and modifications. As discussed previously, FIRRMA has resulted in two separate rulemakings that expand CFIUS’ jurisdiction to include (i) certain non-controlling investments in U.S. businesses engaged in critical technology, critical infrastructure, and sensitive personal data, and (ii) certain real estate transactions. The final rules will be published in the Federal Register on January 17, 2020 and will go into effect February 13, 2020 (Effective Date), with one exception described below. We anticipate that the Treasury Department will publish a separate rule concerning filing fees soon.
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District Court Overturns OFAC Fine Against Exxon01.13/Blog
On December 31, 2019, the U.S. District Court for the Northern District of Texas overturned a $2 million fine imposed by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) against ExxonMobil Corp., and its U.S. subsidiaries ExxonMobil Development Company and ExxonMobil Oil Corp. (collectively, “Exxon”). This marked a rare court decision overturning an OFAC sanctions penalty. The Court’s decision focused not on the subject of the sanctions but addressed whether OFAC had provided proper notice of its sanctions requirements.
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Commerce Department Publishes Interim Final Rule Controlling Geospatial Imagery Software for Training AI01.10/Blog
Companies anxiously awaiting the release of “emerging technology” export control rules now have an initial interim rule indicating how the Department of Commerce Bureau of Industry and Security (BIS) is likely to proceed. Specifically, the interim rule related to software for training AI appears to be a narrowly tailored rule covering a specific type of AI software related to specific national security concerns involving geospatial imagery. While there are some questions on the scope of what is covered by “geospatial imagery,” comments on the rule due on March 6 will allow industry to provide input and hopefully obtain formal clarification once the final rule is issued. Additionally, the interim rule highlights that the new “emerging technology” rules will not be a “one and done” but rather a rolling series of rules on specific technologies warranting control.
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Developments Highlight Secondary Liability Risks for Private Funds10/02/Alert
In an age of heightened litigation risk and a motivated Securities & Exchange Commission (SEC), private funds need to be increasingly mindful of secondary liability risks, especially when evaluating costs and benefits of potential portfolio company ownership structures. Given the uncertainties, firms must take steps to mitigate such risks—including documenting oversight, observing corporate formalities, ensuring the creation and implementation of strong internal controls, and adequately training professionals who serve as directors.
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Four China Nuclear Industry Companies Added to “Entity List”08/15/2019
On August 14, 2019, the U.S. Commerce Department added China General Nuclear Power Group (CGN) and three of its affiliates, China General Nuclear Power Corporation (CGNPC), China Nuclear Power Technology Research Institute Co. Ltd., and Suzhou Nuclear Power Research Institute Co. Ltd., to the Commerce Department’s “Entity List.” Effective immediately, both U.S. and non-U.S. companies are prohibited from exporting or transferring to the listed Chinese entities any goods, software or technology that is subject to control under the U.S. Export Administrations Regulations (EAR) (including EAR99 items not on the Commerce Control List). Licenses from the Commerce Department’s Bureau of Industry and Security (BIS) are subject to a presumption of denial.
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The Qualified Opportunity Zone Program: Thoughts on the Long-Awaited Treasury Guidance11.14/Alert
Section 13823 of the Tax Cuts and Jobs Act, P.L. No. 115-97 (2017) added Sections 1400Z-1 and 1400Z-2 to the Internal Revenue Code of 1986, as amended (the “Code”). These provisions created the Qualified Opportunity Zone (“QOZ”) program that has recently generated such a wave of media attention that one might surmise President Trump had sent an angry late-night tweet about it.
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Pillsbury's Post-Election Outlook11.07/Alert
The 2018 Midterm Election played out as most poll forecasters speculated. Although several races have yet to be decided, Republicans have retained control of the Senate, but lost at least 29 seats, allowing the Democrats to wrest back control of the House for the first time since 2010.
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2018 Election Night Guide11.02/Article
Pillsbury’s Political Law and Public Policy groups break down the need-to-know numbers for this year’s election. Pillsbury’s biennial Election Night Guide examines the potential outcomes for the 2018 Congressional and Governor’s races. Our Public Policy team is also preparing a post-election guide that will be useful in navigating potential changes in Congress.
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Fall 2018 CFIUS Briefing09.24/Alert
Many US-China deals are still getting done, but there is no question the challenges facing those deals has increased over recent months. Relatively few transactions have emerged from the CFIUS process since earlier this year; some have cleared and some have not. Our review of publicly available information indicates that the clearance rate for US-China deals since the Trump Administration took office has fallen from about 55% earlier this year to about 50%, but two very high-profile deals received approval (an acquisition by COSCO which involved a pier in Long Beach Harbor, and China Oceanwide’s acquisition of Genworth Financial). We continue to believe that careful selection of target assets, early risk assessment, and transparent filings with CFIUS will still allow many if not most deals to get through.
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Congress Reaches Agreement on CFIUS Reform Legislation Broadening National Security Reviews and Addressing Emerging Technologies07.30/Blog
House and Senate negotiators have agreed on proposed reforms to the Committee on Foreign Investment in the United States (CFIUS) foreign investment review process, which has been added as Title XVII of the FY2019 National Defense Authorization Act (NDAA). The final bill makes a number of changes intended to improve the efficiency of national security reviews and investigations, although a significant increase in staff and funding will be required in order to handle the increased caseload. Importantly, outbound technology transfers in the context of joint ventures and other collaborative arrangements will not be added to the “covered transaction” definition, but will instead be addressed by U.S. export controls.
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The UK’s Sanctions and Anti-Money Laundering Act Enters into Law06.08/Blog
On 23 May 2018, the Sanctions and Anti-Money Laundering Act became law in the United Kingdom. Its aim is to provide a legal framework to allow the UK to impose sanctions and implement its own sanctions regime once the UK leaves the EU on 29 March 2019. However, the Bill goes well beyond any current EU sanctions regime and provides scope for the Government to shape an autonomous UK sanctions policy
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Car Wars: Trump Administration Opens Section 232 Investigation into Imports of Autos and Auto Parts05.30/Blog
On May 23, 2018, as directed by President Trump, the Secretary of Commerce initiated a Section 232 investigation into whether imports of automobiles, including SUVs, vans, light trucks and automotive parts, threaten to impair national security. President Trump reportedly is contemplating tariffs as high as 25% on automobile imports, similar to the tariff imposed a result of its recent 232 action on steel imports.
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With CDD and Beneficial Ownership Rule in Effect, FinCEN Continues to Clarify and Refine Rules for Financial Institutions05.21/Blog
Long awaited rules for “Customer Due Diligence Requirements for Financial Institutions” (the CDD Rules) went into effect on May 11, 2018. FinCEN has taken steps to clarify and refine implementation of the CDD Rules, issuing (1) FAQs on April 3, 2018 and (2) a ruling on May 16, 2018 providing covered financial institutions with a limited 90-day exceptive relief from the obligations for financial products and services that are subject to automatic renewals, provided such products were established before May 11, 2018.
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US Announces Withdrawal from JCPOA05/08/Blog
Today, President Trump announced his intention to withdraw the United States from the Joint Comprehensive Plan of Action (JCPOA) and to impose the “highest level of economic sanctions” on Iran. The Office of Foreign Assets Control quickly thereafter published FAQs that discuss how the sanctions will be implemented.
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USTR to Review India’s Eligibility for Continued Preferential Tariff Access Under the GSP Program04.20/Blog
The United States Trade Representative announced it will review India’s eligibility to continue receiving treatment as a beneficiary country under the U.S. Generalized System of Preferences program. India is by far the largest beneficiary of the GSP program.
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Russia’s State Duma Introduces Draft Law to Counter U.S. Sanctions04.16/Alert
Lawmakers in State Duma—a lower house of the Russian Federal Assembly—have introduced legislation to counter recent U.S. sanctions, setting out a broad menu of prohibitions, from import and services restrictions to individual bans.
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Trump Administration Considering Use of IEEPA To Restrict U.S. Technology Transfer to China04.12/Blog
Reports suggest that the Trump Administration may declare an emergency under the International Emergency Economic Powers Act to grant the CFIUS authority to review technology transfer transactions even where there is no transfer of “control.”
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Spring 2018 CFIUS Briefing04.10/Alert
How can parties help CFIUS say “yes?” The key is to begin with the data, identify problems early, and be proactive.
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Treasury Department Designates Russian Oligarchs, Officials, and Entities04.09/Blog
The Treasury Department's April 6 placement of several prominent Russian individuals and companies on the Specially Designated Nationals and Blocked Persons lists promises to be more commercially disruptive for western companies than most past listings.
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Trump Administration Takes Action Following Section 301 Investigation03.23/Blog
President Trump’s latest directives regarding the USTR’s Section 301 investigation into China has wide-ranging implications for in-bound Chinese investment. Here’s what you need to know.
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CFIUS and China: Separating Fact from Fiction02.12/Alert
It's true that a few high-profile deals have been abandoned due to CFIUS concerns. But many other transactions--including three recent ones involving Chinese acquirers--have been cleared.
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Status of the Iran Nuclear Deal and New Sanctions Designations01.12/Blog
In a statement, President Trump warned European allies that unless they fix these four flaws in the Iran nuclear deal, the U.S. intends to withdraw from it.
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U.S. Targets Human Rights Abusers and Corrupt Actors Worldwide – Key Takeaways from the Potent New Sanctions01.10/Blog
Executive Order 13818 authorizes the imposition of sanctions on individuals worldwide connected with “serious human rights abuse,” corruption, or “the transfer or the facilitation of the transfer of the proceeds of corruption.” Here is what businesses need to know.
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Update on U.S. Investigation of China’s IP Practices01.08/Blog
The U.S. Trade Representative is expected to announce affirmative findings and remedy recommendations regarding China's alleged violation of Section 301(b)(1) of the Trade Act. What happens next?
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Large Whistleblower Award to Non U.S. Person – Lessons for Anti-Corruption Compliance Programs12.13/Blog
Increasingly, The SEC is being alerted to securities fraud by whistleblowers living in foreign countries. It is a trend that only further incentivizes sound compliance.
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Retroactive Corporate Liability for Human Rights Abuses12.07/Alert
Section 13 of the Criminal Finances Act 2017 is now in effect in the United Kingdom, meaning companies have far greater liability for human rights violations.
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CBP Takes Measures to Enforce Ban on Imports Made with Forced Labor and Sanctions for Forced North Korean Labor in Supply Chains12.04/Blog
With a renewed focus on enforcing its ban on imports of forced labor, U.S. Customs and Border Protection has taken new measures so importers don't run afoul.
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Three Key Aspects of the Proposed Reform to the CFIUS Process11.18/Blog
A bill updating the Committee on Foreign Investment in the U.S. and the national security review process has been introduced in the U.S. House and Senate. Here's what you need to know.
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Reaching for a Rarely Used Tool to Probe China IP Practices11.14/Blog
President Trump has repeatedly express concern about China's trade practices, most notably its technology transfer requirements. Now the U.S. Trade Representative is employing a rarely used tool to investigate.
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Evolving U.S. and UN Sanctions Against North Korea11.13/Blog
The U.S. and UN have imposed a number of sanctions on North Korea since the middle of 2017. Here is a summary of all the key pronouncements.
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U.S. Government Agencies Publish Changes to Cuba Sanctions Program Pursuant to President Trump’s Policy Announcement11.08/Blog
The U.S. government has announced a number of changes to its sanctions program in Cuba, adjusting some of the broader reforms initiated during the previous administration.
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Russia Sanctions Under CAATSA – U.S. Updates Rules and Provides Guidance on Enforcement11.03/Blog
U.S. efforts to advance sections of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) will impact the implementation and enforcement of Russia-related sanctions.
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Another Market Opens: U.S. Revokes Sudanese Sanctions Program Though Important Limitations Remain in Place10.26/Blog
The U.S. government has revoked sanctions regulations in recognition of Sudan’s sustained positive actions in stopping conflict and improving humanitarian access. However, since Sudan remains designated as a “State Sponsor of Terrorism,” key restrictions remain and companies must continue to abide by applicable anti-corruption and anti-money laundering laws.
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President Trump Issues Executive Order Blocking Proposed Acquisition of Lattice Semiconductor09.13/Blog
For only the fourth time in 30 years, the President blocked the proposed acquisition of a U.S. company following a review by the Committee on Foreign Investment in the United States (CFIUS). The alert explains the reasoning behind the Executive Order that prevented a Chinese consortium from acquiring a U.S. semiconductor company at a time when concerns about Chinese investment in the United States are growing.
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New Executive Order Imposes Further Sanctions on Venezuela08.25/Blog
On August 25, President Trump issued an Executive Order providing for sanctions against the Government of Venezuela targeting certain long-term financial transactions, similar to existing sanctions on the Russian petroleum sector. The Order does not restrict imports or exports of oil, and the Treasury Department’s Office of Foreign Assets Control issued several general licenses that provide for specific permitted activities.
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Three Birds with One Stone: New Russia, North Korea and Iran Sanctions08.11/Blog
On August 2, 2017, President Trump signed into law the Countering America’s Adversaries Through Sanctions Act (CAATSA), strengthening U.S. sanctions on Russia, North Korea and Iran. The new sanctions could have far-reaching implications for companies and investors, although it remains unclear how vigorously they sanctions will be implemented, particularly for Russia.
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OFAC Updates FAQs on the Cuba Sanctions Program08.03/Blog
On July 25, 2017, the Office of Foreign Assets Control (OFAC) updated its Cuba FAQs to address upcoming changes to Cuba sanctions rules as they relate to pre-existing contracts, licenses, and travel arrangements. The new OFAC guidance addresses upcoming changes to its Cuba sanctions as they relate to pre-existing contracts, licenses, and travel arrangements.
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Senate Minority Leader Urges President Trump to Suspend Chinese Acquisitions of U.S. Companies08.01/Blog
Senate Democratic Leader Chuck Schumer has written to President Trump asking him to order the Committee on Foreign Investment in the United States (CFIUS) to suspend the approval of all covered transactions by Chinese entities. This article discusses Sen. Schumer’s position and possible upcoming legislative action.
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China Updates New Industry Catalogue: PRC Reduces Regulatory Procedures for Foreign Investments Following its 2016 Reforms07.12/Alert
The National Development and Reform Commission and the Ministry of Commerce of the People’s Republic of China’s 7th updated version of the Catalogue of Industries for Foreign Investments, became effective July 28, 2017. The Catalogue opens various previously restricted industries to foreign investors (mainly in services, manufacturing and mining) and includes a “negative list” of industries that will require special pre-approval and examinations for foreign investments.
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A Message to China? New U.S. Sanctions and AML Measures for North Korea06.30/Blog
In June 2017, the U.S. Treasury Department announced sanctions designations and anti-money laundering measures against Chinese entities engaged in business with North Korea. The actions may be intended to send a political message.
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CFIUS and Real Estate06.26/Alert
The expanding influx of foreign investments in U.S. real estate has drawn the attention of three key U.S. Senators amid national security concerns.
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New Details Emerge on Legislative Proposal to Modernize CFIUS Process06.23/Blog
A bipartisan group in Congress is working to modernize the Committee on Foreign Investment in the United States (CFIUS) review process due to increased foreign direct investment and perceived threats to national security. The proposed legislation would focus on nations posing the greatest threat and give CFIUS clearer authority to review investments.
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EU Proposes Significant Changes to Anti-Money Laundering Laws03.09/Blog
Earlier this year, European law makers approved important amendments to the EU’s Anti-Money Laundering (AML) Directive that would implement new rules to combat money-laundering, terrorism financing and tax evasion.
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“Buy American, Hire American”—From Rhetoric to Regulation02.08/Alert
“We will follow two simple rules: buy American and hire American.” While world leaders are pondering what these words from President Trump’s Inaugural Address mean for international trade, a different question looms for U.S. Government contractors—what is on the horizon as far as the Buy American Act and similar protectionist regulations?