Lend Me Your EARs: CFIUS Makes Export Controls a Trigger for Mandatory Filings

Reid WhittenJulien BlanquartLisa MaysBy Reid Whitten, Julien Blanquart and Lisa Mays on Posted in CFIUS

On October 15, 2020, CFIUS will officially tie mandatory filings to U.S. export control regimes, including the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR).  While that change may draw a clearer line of what constitutes a mandatory filing, it also pulls your CFIUS review into the complex (and somewhat nerdy) world of export regulations. Continue Reading

CFIUK? The UK Brings Heavier Scrutiny to Its Foreign Investment Reviews

Julien BlanquartReid WhittenBy Julien Blanquart and Reid Whitten on Posted in CFIUS

The UK government has now made a show of force in its foreign direct investment (FDI) reviews.

For the first time, the UK Secretary of State issued an order to prevent a transaction for raising public interest considerations. Specifically, the UK Government blocked the prospective deal on national security grounds. In the September 5, 2020 notice, the UK Government accepted commitments from Gardner Aerospace Holdings Limited (Gardner) to not proceed with its proposed acquisition of Impcross Limited (Impcross), a UK-based manufacturer of components for the aerospace and military aircraft industry. Continue Reading

Certainties and Uncertainties Under China’s New Unreliable Entity List

Michael ZhangReid WhittenBy Michael Zhang and Reid Whitten on Posted in Export Administration Regulations (EAR) and Commercial Exports

On September 19, 2020, China took a new strategic position in its ongoing trade confrontation with the United States. The Ministry of Commerce of the PRC (“MOFCOM”) issued Regulations on Unreliable Entity List (“UEL”) and drew wide public attention to the beginning of the PRC government’s retaliation against the Trump Administration’s recent restrictions on Chinese entities including Huawei, TikTok and WeChat. It is notable that MOFCOM deliberated with more than a year of internal discussion before implementing the UEL. Continue Reading

China Expands Technology Export Controls: Fighting back on TikTok and Putting Your R&D at Risk

Reid WhittenJulien BlanquartBy Reid Whitten and Julien Blanquart on Posted in Export Administration Regulations (EAR) and Commercial Exports

On August 28, 2020, China took its own swing in the fight over TikTok. The blow, however, may land right in the middle of U.S.-China technology research, collaboration, and innovation. New export regulations may require licenses from the Chinese government before researchers in China may share their technological advances with colleagues, counterparts, or customers in the United States. Continue Reading

Export Control HR Pitfalls To Avoid When Hiring

Lisa MaysGreg BerkReid WhittenBy Lisa Mays, Greg Berk and Reid Whitten on Posted in Export Administration Regulations (EAR) and Commercial Exports, ITAR and Defense Exports

Hiring employees does not usually call to mind international trade compliance obligations. However, together U.S. export controls and anti-discrimination laws create a web that is overlooked or misunderstood by many types of employers of all sizes across many industries. Anti-discrimination laws prohibit unlawful citizenship status restrictions when hiring, and U.S. export controls prohibit disclosing controlled information to foreign nationals without authorization. Together, these law limit acceptable job descriptions and hiring practices. Continue Reading

UPDATE: National Security Meets Teenage Dance Battles: U.S. Increases Pressure on ByteDance Sale of TikTok

Reid WhittenJulien BlanquartFatema MerchantBrian WeimerBy Reid Whitten, Julien Blanquart, Fatema Merchant and Brian Weimer on Posted in CFIUS, Sanctions

The Takeaway: Severe restrictions on ByteDance’s Sale of TikTok should be a warning to media and tech companies with foreign ownership, particularly Chinese investment, to know your risks and mitigate them before the government comes knocking. Continue Reading

The Professional Services Firm as Foreign Agent: Notable FARA Advisory Opinions

Enumale AgadaJ. Scott MaberryBy Enumale Agada and J. Scott Maberry on Posted in Foreign Agents Registration Act (FARA)

The U.S. Department of Justice has released a series notable advisory opinions outlining how some typical activities of law firms, consultants, and corporate legal departments may require registration under the Foreign Agents Registration Act (FARA). Some of the more interesting opinions are summarized here: Continue Reading

National Security Meets Teenage Dance Battles: Trump Issues Executive Orders Impacting TikTok and WeChat Business in the U.S.

Fatema MerchantBrian WeimerKirsten RyanBy Fatema Merchant, Brian Weimer and Kirsten Ryan on Posted in CFIUS

On August 6, 2020, Trump issued two separate executive orders that will severely restrict TikTok and WeChat’s business in the United States.  For weeks, the media has reported on Trump’s desire to “ban” TikTok with speculation about the legal authority to do so.  We break down the impact of the Orders below. Continue Reading

Clearing the Air: FinCEN Guidance May Help Banks Find Their Way in the Field of Hemp Financing

Reid WhittenBy Reid Whitten on Posted in Anti-Money Laundering

On June 29, 2020, the Financial Crimes Enforcement Network (FinCEN) published updated guidance intended to “enhance the availability of financial services” for the hemp industry (the Guidance).  Even though the Agriculture Improvement Act of 2018 legalized hemp[1] at the federal level, some banks have hesitated to provide financing to the hemp industry because they are uncertain of their obligations under the Bank Secrecy Act or Anti-Money Laundering regulations (BSA/AML).  The Guidance was published to clarify those obligations, and follows closely on the new National Credit Union Administration guidance for federally-chartered credit unions issued on June 20, 2020.  Continue Reading

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