Export, Sanctions Violations Not 'Driving' DOJ China Initiative, Former Official Says

Although the Department of Justice’s China’s initiative (see 2012030033) is still likely an agency priority, the program has slowed under the Biden administration and may lead to less export control and sanctions-related prosecutions, said George Pence, a trade lawyer with Akin Gump. Pence, speaking during a Jan. 20 webinar hosted by the law firm, said he thinks “criminal export and sanctions prosecutions are along for the ride but are not driving the China initiative.”

After reviewing recent DOJ news releases, he said only a fraction involve charges under the International Emergency Economic Powers Act or the Export Control Reform Act, and none mentioned the Arms Export Control Act. “Admittedly, assessing the role of export and sanctions prosecutions within the overall China initiative based on these press releases, and concluding that those prosecutions are a relatively minor piece of the enforcement puzzle, is not scientific,” said Pence, who previously worked on export control crimes as a federal prosecutor. “That DOJ curated these releases on its own website, however, does bolster the conclusion that the releases are fairly representative of the overall effort.”

Pence also said “reports of the death of the China initiative under the Biden administration are greatly exaggerated,” adding that the program is still receiving resources. But he said the initiative has “hit major speed bumps,” including dismissals of high-profile cases and allegations the program may lead to racial profiling.