The Reality of Dealmaking Amid Competing US-China Sanctions

January 14, 2022 | BY

Vincent Chow

With the entrenchment of reciprocal US-China sanctions and export controls in the past year, counsel have helped clients enact fundamental changes to their approach to making deals, from contractual terms to due diligence

Summary


  • China's burgeoning sanctions regime emboldening Chinese parties in contractual negotiations
  • One-sided terms favoring foreign parties no longer feasible 
  • Traditional global compliance strategies unable to keep up with competing compliance requirements

 

With China building up its arsenal of countermeasures in response to sanctions imposed by other countries, foreign companies are finding it more difficult to mitigate the sanctions-related risks of their deals through contractual terms. Although the risk of conflicts of laws in dealmaking is not a new phenomenon, heightened tensions between China and countries like the United States have considerably raised the stakes for both sides in a deal.

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