CSIS: The New Arms Race: Sanctions, Export Control Policy, and China

Wed March, 2022, Age: 1 year

The use of export controls and sanctions as unilateral and plurilateral foreign policy tools has become more frequent and complex. In the United States, heightened attention on reexport/retransfer and end-user/end-use controls has given rise to an intricate regulatory regime that is a boon, perhaps, to lawyers, consultants, and advisers, but nonetheless challenging for companies that must ultimately understand their changing risk profile and maintain compliance. As the United States continues to exploit the extraterritorial reach of its regulations, the growing threat of a regulatory “arms race,” particularly with China, adds to an already jittery business environment. The “tit for tat” nature of export controls and sanctions today risks undermining the effectiveness of export controls and leaving policymakers with limited options.




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