Asian businesses face export control, sanction compliance headaches

Author: Karry Lai | Published: 11 Jun 2018

Asian businesses, especially Chinese companies, are facing increasing pressure as the US increasingly resorts to export control and sanction regulations as a foreign policy tool.

The issue was recently amplified by the ZTE case which has been heavily criticised by market participants globally. Due to breaching terms of an existing sanctions settlement with the US, ZTE was initially banned from purchasing components central to its business from US partners for seven years. The ban will be lifted once ZTE pays the $1 billion fine and $400 million escrow in a US-approved bank.

According to panellists at the recent Asialaw In-House Counsel Summit in Hong Kong, what Asian corporates are finding most challenging is tracking channel partners with little to no resources on export controls and the technical difficulty of knowing the percentage of US content across complex product lifecycles when there are large volumes of products.

Corporates have a much...