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Similar to the United States and other countries, China's export control laws and policies encourage corporations to establish Internal Compliance programs in order to normalize their export control procedures, facilitate license applications, and reduce frequency of audit. Under certain circumstances, companies with outstanding compliance program could be entitled to non-prosecution agreement (NPA) or sentencing remission during export control criminal investigations. Therefore, it is imperative for enterprises engaged in exportation of goods, software and technology from China to establish a robust and recognized Export Control Internal Compliance Program that adheres to Chinese laws and regulations. As one of the proponents of the Export Control Internal Compliance Program Guidance (Draft) issued by China's export control authority and a key contributor to the development of internal compliance programs for numerous multinational corporations, V&V's lawyers possess extensive knowledge not only on regulatory requirements and specific law enforcement standards related to China's export control compliance but also on business operational reality. We possess the expertise and experience to assist enterprises in developing a sound China Export Control Internal Compliance Program that enables them to navigate the intricate and ever-changing regulatory environments.

The Export Control Compliance Programs of MNCs are no longer limited to its global export control compliance program being deployed and implemented solely in China. Whether it pertains to procurement, R&D, manufacturing, sales or service, as long as it involves the cross-border transfer of goods, software and technology from China, it is imperative to ensure strict adherence to the requirements stipulated by China's export control laws and regulations. The program incorporates an evaluation of whether a company's product is subject to China and other jurisdictions' Export Control regime.  It also encompasses risks such as end-user/end-use that necessitate consideration at each stage of the company's business operations. Moreover, implementing corporate’s global export control and sanction policies in China shall also mitigate the associated anti-sanction and security exposure under China’s existing anti-sanction and security laws, regulations and policies under current geopolitical circumstance. V&V assists companies in developing, reviewing, and optimizing internal compliance policies pertaining to their operations in China, ensuring adherence to both foreign and Chinese export control laws, sanctions regulations, and other regulatory requirements.

The majority of global export control and sanctions oversight departments, including those in China, advocate for companies to undertake comprehensive self-assessment pertaining to export control matters. This includes conducting due diligence on their own operations, as well as upstream entities and downstream customers. A comprehensive due diligence process will not only enable enterprises to promptly identify and address the compliance risks associated with their operations, but also facilitate the establishment of a strong compliance reputation in front of partners and regulatory authorities, thereby enhancing trustworthiness. Effective due diligence entails not only auditing and verifying the existing systems and their implementation by the enterprise, as well as its upstream and downstream partners, but also devising a contingency plan that accounts for the enterprise's current operational conditions while anticipating future policy uncertainties. V&V is proficient in utilizing effective, efficient, and highly confidential measures to aid companies in conducting due diligence for risk identification and developing relevant contingency plans promptly.  Additionally, V&V possesses expertise in the strategic implementation of legal techniques to assist companies with reducing or waiving penalties through voluntary disclosure.

In addition, conducting due diligence in China based on compliance obligations under foreign laws and regulations will inevitably require consideration of China's own regulations, particularly those related to anti-sanction and security.

Chinese regulators are also tending to step up investigations and enforcement against high-risk industries and companies. When responding to investigations from Chinese regulators, positive co-operation and open communication are often beneficial to companies. However, the intricacies of laws and regulations and the discretionary powers of the administrative authorities can be confusing for companies. V&V is well-versed in laws, regulations, and enforcement protocols, and is able to effectively assist companies in compiling evidence and constructing sound arguments, and communicate frankly with regulators based on relevant evidence and argument to achieve the best possible outcome for the company during investigations.  Furthermore, China's regulators appreciate companies' commitment to enhancing their internal export control compliance management processes during investigations as these improvements can catalyse a reduction or elimination of penalties.

Our experience in the area of export control, sanctions and security includes:

- In-depth knowledge of the regulatory restrictions and license requirements applicable to China, Hong Kong, United States and Europe.

- Cross-jurisdictional matters in the administration or major countries regarding to export, reexport, sanction, investment, and supply chain security scrutiny

- Due diligence and risk assessment of all-level commercial activities of cooperations and their suppliers and customers

- Development of internal compliance programs and contingency plan for multinational corporations in consistent with regulatory compliance

- Advisory opinions, interpretations, license applications, exception and knowledge of regulatory exceptions and limitations

- Negotiation, voluntary disclosures, and defense in enforcement proceedings