I would like tentatively to share the insights of Ms. Jeannette Chu, a non-resident senior associate with the Trustee Chair in Chinese Business and Economics at the Center for Strategic and International Studies in Washington, D.C., and a managing director at PricewaterhouseCoopers Advisory Services LLP.
Her theme is:
The New Arms Race: Sanctions, Export Control Policy, and China
The use of export controls and sanctions as unilateral and plurilateral foreign policy tools has become more frequent and complex.
In the United States, heightened attention on reexport/retransfer and end-user/end-use controls has given rise to an intricate regulatory regime that is a boon, perhaps, to lawyers, consultants, and advisers, but nonetheless challenging for companies that must ultimately understand their changing risk profile and maintain compliance.
As the United States continues to exploit the extraterritorial reach of its regulations, the growing threat of a regulatory “arms race,” particularly with China, adds to an already jittery business environment.
The “tit for tat” nature of export controls and sanctions today risks undermining the effectiveness of export controls and leaving policymakers with limited options.
