Litigation

Sanctions Round Up Fourth Quarter 2021

Shearman & Sterling LLP

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1 CHINA For five years now, tough measures to combat perceived aggressions by the People's Republic of China have been a hallmark of US foreign policy, particularly PRC activities relating to democracy and human rights. This quarter, the Biden Administration resumed its campaign of sanctions measures, including by signing into law bipartisan legislation aimed at restricting the import of goods potentially connected to forced labor in Xinjiang. To curb the PRC's military modernization and development of surveillance technology, the Commerce Department blacklisted a host of Chinese tech firms. In related developments, the Treasury Department imposed restrictions on transactions in the publicly listed securities of Chinese tech firms by designating them as Chinese Military Industrial Complex Companies. Meanwhile, five PRC officials were sanctioned for allegedly implementing anti-democratic measures in Hong Kong, and the SEC implemented rules to increase oversight of foreign issuers. President Biden Signs Xinjiang Forced Labor Legislation into Law As the quarter closed, the Biden Administration's commitment to addressing alleged human rights abuses kept apace. On December 23, President Biden signed into law bipartisan legislation aimed at addressing reported abuses against the Uyghur Muslim population in the Xinjiang Uyghur Autonomous Region. Titled the "Uyghur Forced Labor Prevention Act," the Act aims to prohibit the importation into the United States of goods "mined, produced or manufactured wholly or in part with forced labor" from China, in particular from Xinjiang. The Act also imposes broad restrictions on the import of goods made of material sourced from Xinjiang or connected to persons working with the Xinjiang regional government or the Xinjiang Production and Construction Corps. The far-reaching scope of the Act means that the prohibitions apply to goods made by companies based outside of

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