Last week, President Biden invoked the Defense Production Act (“DPA”) to expand domestic production of certain critical minerals involved in the manufacture of large capacity batteries.  The five minerals specifically identified in the President’s memorandum are lithium, nickel, cobalt, graphite, and manganese.

The DPA allows the President to expedite and expand the supply of materials

Please join us for a Kelley Drye Webinar on March 29th.   “Hot Market/Cold War: Is China Your Best Customer or Your Biggest Threat?” will feature a one-hour discussion between Kelley Drye International Trade and Government Relations partner, Paul Rosenthal, and Senior International Trade/Government Relations Advisor, Bill Reinsch, moderated by International Trade

On February 24, 2022, the Biden Administration announced the release of six executive-branch reports and a White House “capstone” report pursuant to Executive Order (EO) 14017 on America’s Supply Chains (February 24, 2021), which established a policy of pursuing more resilient, diverse, and secure American supply chains.  These reports culminated year-long sectoral assessments of the

Last week, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $5,228,298 settlement agreement with Sojitz (Hong Kong) Limited (Sojitz HK) for causing U.S. financial institutions to process U.S. dollar payments related to the purchase and resale of Iranian-origin goods in Asia.  This case demonstrates how U.S. dollar payments often trigger OFAC jurisdiction

The historic infrastructure bill, now approved by the U.S. Congress and pending President Biden’s signature, includes broad policy provisions designed to improve governmental sourcing from U.S. manufacturing sectors.  These new statutory authorities aim to:

  • Expand domestic preference procurement policies applicable to federal financial assistance programs for public works infrastructure;
  • Increase the domestic component content requirements

Yesterday, President Biden signed an Executive Order (“E.O.”) that formally revokes and replaces three earlier E.O.s that aimed to restrict transactions with TikTok, WeChat, and other communications and Fintech applications and provides a new framework to address security concerns related to the information and communications technology and services (“ICTS”) supply chain.  The new E.O. was

Yesterday morning, June 8, 2021, the Biden-Harris administration released a report including factual findings and recommendations concerning four critical supply chains.  The full 250-page report is available here and a White House fact sheet summarizing key findings and recommendations is available here.

The report stems from President Biden’s Executive Order 14017 (“EO 14017”), which

Today, the Department of Defense (“DoD”) published in the Federal Register a request for comments on risks in the supply chain for strategic and critical materials. DoD’s request stems from an Executive Order signed in February by President Biden, which directed the DoD and three other federal agencies to closely examine America’s supply chains in

On August 20, the Bureau of Industry and Security (“BIS”) published a final rule (“final rule”) amending the Export Administration Regulations (“EAR”) to expand restrictions on transactions involving Huawei entities that are included on BIS’s Entity List (“designated Huawei entities”).  The newly expanded rule applies to a broader range of items produced outside of the

Over the last month, the United States has taken a variety of steps to increase pressure on China in response to the imposition of China’s National Security Law in Hong Kong and alleged human rights abuses in Xinjiang.  These measures include new sanctions programs targeting Hong Kong, export and trade control restrictions, and sanctions targeting actors in the Xinjiang region.  The U.S. government also issued a lengthy Advisory warning U.S. and global companies of supply chain risks related to forced labor and other human rights issues in Xinjiang.

In this post, we highlight some key risks that companies should consider when doing business in the region against the backdrop of rising U.S.-China tensions.

Continue Reading China and Hong Kong Developments: Sanctions, Export Controls, and Supply Chain Risks