On March 31, 2020, Amcham Shanghai held a series of seminar on export control compliance, where David Pan, Partner at Llinks Law Offices LLP, was invited to deliver an English speech entitled Export Control Law, MOFCOM Order No.1, and What's Coming own the Pipeline.
Under the background of escalating frictions between China and the US in terms of trade, economy, politics and etc., the US has been frequently taking measures of control and sanctions against China. In response, China has introduced legislation on export control and trade sanctions frequently since last year. David Pan's speech aims to identify relevant compliance issues that enterprises are concerned about arising from the above situation---- what compliance requirements are put forward by China's newly issued Export Control Law and Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (hereinafter referred to as Counteracting Measures).
David Pan first introduced the background and legislative purpose of the Export Control Law and the Counteracting Measures, and reminded of the main measures taken by the US against China in export control, trade sanctions, judicial actions and other aspects. Then, David Pan briefly introduced China's legal system of export control, the scope of controlled items under the Export Control Law and the factors for the review of controlled items.
David Pan focused on the Counteracting Measures during his speech, covering the scope of application, reporting, assessment, injunction, exemption, remedies, support, countermeasures and other major mechanisms. For unclear provisions in the Counteracting Measures, David Pan referred to foreign legislation such as the European Commission Regulation No. 96/2271 (the EU Blocking Statute) and analyzed in combination with specific scenarios and cases, such as international law and basic principles of international relations, the conditions of reporting, what is "not observed", and the conditions of seeking judicial remedies.
Based on the recent high-level talks between China and the US and the sanctions measures taken by China, David Pan proposed his own opinions and predictions on the application of the Export Control Law and the Counteracting Measures as well as possible regulations and policies to be promulgated in the future. Finally, David Pan pointed out that the Counteracting Measures is not clear, and the legal profession now held different opinions on issues such as the scope of application, therefore the Counteracting Measures still awaits for ancillary regulations and policies or clarification by relevant authorities. In order to prepare for the compliance requirements under the Counteracting Measures as soon as possible, David Pan suggested that enterprises shall sort out all relevant transactions in a timely manner, determine whether there are applicable transactions under the Counteracting Measures, and prudently determine whether to take measures such as reporting or applying for exemption.
More than 80 business representatives and professionals from the fields of industrial manufacturing, high-tech, aviation, information technology, consulting and universities participated in the seminar and exchanged views with the speakers. The atmosphere of the seminar was lively.
