China’s Export Control Law (ECL) went into effect on December 1st 2020 and will regulate the export of sensitive and technological goods from China to importing countries. This places a new burden on Chinese exporters and also non-Chinese customers to review and monitor their compliance programs to ensure they have the correct export control policies in place to manage this new regulation. The ECL provides that any person who provides agency, shipping, delivery, customs clearance, financial and other services for an exporter can be subject to penalties. This new regulation has been enacted against a background of heightened export control, especially the U.S. targeting of Chinese companies such as Huawei, TikTok and others. In light of the importance of both China and the U.S. on global trade are we now entering a new era of competing trade compliance controls?
IHS Markit and the Institute for International Banking Law and Practice recently hosted a webinar discuss this topic. Our Adam Klauder moderates the discussion on the potential impacts of the Export Control Law on financial institutions expert panelist from Jenner and Block LLP, the Association of Banks in Singapore, FTI Consulting and Seward & Kissel LLP.