Export Control, Sanction, and Security
China’s foreign policy recently tends to focus on more export control, and anti-sanction restrictions imposed on specific industries and activities, many of which are considered as “national security exposure”. These areas represent the main compliance challenges faced by many foreign companies operating in the Chinese market. In response to reviews of Chinese enterprises, MOFCOM, MFA, CAC, and GAC are increasingly implementing legislative, enforcement, and counter-sanctions measures related to export controls.
Furthermore, national security concerns are increasingly becoming a primary focus for companies operating in China when implementing export control measures, complying with economic sanctions programs, or responding to investigations by foreign regulators. For example, companies operating in China must obtain prior approval from MOFCOM before participating in any export control-related investigations conducted by foreign regulatory authorities. Some of the data are considered as “sensitive data” and require self-classification and pre-approval from CAC before being transferred to foreign regulatory authorities, or from DOJ before transferring to a foreign juridical organ (e.g., a criminal court).
The hallmark of Vison & View’s practice lies in providing expert guidance to companies regarding compliance with China's export control and sanctions laws, regulations, and policies. Additionally, we provide consultation service in ensuring adherence to China’s anti-sanction and security laws and regulations while implementing internal compliance programs mandated by foreign laws and regulations or when responding to investigations imposed by foreign regulatory authorities.
Cybersecurity and Data Protection
China is one of the most security-conscious countries in the world when it comes to data and information. Its legislation, interpretation, and enforcement of privacy, data security, and information security extend beyond safeguarding individual privacy. More significantly, China has elevated issues related to data governance, data sovereignty, and information security to the level of "national security." Despite the gradual establishment and improvement of China's legislation on privacy, data protection, and information security in recent years, legislative and judicial interpretations continue to expand and improve across various industries. In addition to general provisions, specific regulatory regulations and industry standards exist for different sectors such as manufacturing, finance, banking, telecommunications, healthcare, and automotive. Foreign companies must not only be aware of general regulations but also the specific requirements of their industry to ensure compliance in this sensitive and crucial area of regulatory compliance.
The growing number of foreign companies failing information security reviews or violating regulatory requirements related to privacy and data security, resulting in penalties such as market entry bans, sales restrictions for certain types of businesses, administrative fines, and even criminal sanctions, underscores the Chinese authorities' unwavering commitment to enhancing data and information security.
ESG and Supply Chain Compliance
Over the past few years, significant advancements have been made in ESG and supply chain compliance both domestically and internationally. The European Union (EU), which has always prioritized sustainable development issues by enacting legislation focus on human rights and environmental protection such as Corporate Sustainability Due Diligence Directive (CSDDD), Conflict Minerals Regulation, the new European Battery Regulation, and the highly anticipated Carbon Border Adjustment Mechanism (CBAM) that is soon to be implemented. The United States, however, has gradually shifted its supply chain concerns towards national-level supply chain security. In line with this premise, the United States has implemented additional review requirements and access restrictions on specific products in certain sectors (such as the information and communications industry). Nowadays, in the current era of globalized supply chains, these policy and regulatory changes have presented enormous challenges to enterprises' management of their supply chains and compliance control. Frequently, when a specific product or enterprise becomes subject to new legislation, it can potentially impact both upstream and downstream entities within the supply chain. Vision & View Law Firm possesses extensive expertise in conducting supply chain compliance due diligence. We are proficient in assisting companies to navigate the relevant regulations based on their specific business circumstances, and devising comprehensive supply chain due diligence plans while providing support throughout the implementation process. Simultaneously, we excel at identifying discrepancies and potential compliance risks, culminating in the adoption of appropriate measures for controlling compliance risks.