How Competing US-China Sanctions are Changing M&A Deals

July 30, 2021 | BY

Vincent Chow

The expansion of competing U.S.-China sanctions requirements are forcing multinationals to rethink their traditional global compliance strategies

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Credit: ntinai/Adobe Stock

Summary

  • Sanctions-related contractual terms can no longer be "one-sided" in favor of foreign parties
  • Competing U.S.-China sanctions necessitate rethink of uniform global compliance approach

The emergence of a Chinese sanctions regime is making it more difficult for foreign parties to mitigate the sanctions-related risks of their deals through specific contractual terms. The new PRC Anti-Foreign Sanctions Law (中华人民共和国反外国制裁法) passed in June could prohibit contractual clauses addressing the consequences of foreign sanctions and push multinationals towards adopting different sets of trade compliance policies across their global operations.

The emerging sanctions