Companies Should Assess Exposure to Potential Russia-Style Controls Against China, Lawyer Says

Companies with Chinese business ties should consider how they would be affected if the U.S. began imposing Russia-style export controls against China, said Crowell & Moring trade lawyer Jeff Snyder. Speaking during a June 21 webinar hosted by the firm, Snyder said his practice has begun conducting exercises to imagine how potential China-related controls would affect a business’ operations, which can help companies assess their risk exposure and make preemptive plans so they aren’t caught off-guard by trade disruptions.

The exercises should involve not only a company’s compliance and sales department but also any “other stakeholders that might have an interest in the future of the business,” Snyder said. “We have been hearing, as you all have, about the possibility of Russia-style export controls being placed on China,” he said. “China, of course, already has been the focus of significant US export controls, but imagine what it might look like if Russia-style controls were placed on China or sequentially implemented.”

Some experts have said the international export controls and sanctions against Russia could serve as a blueprint for similar measures against Beijing if it invades Taiwan (see 2203070062).