One Administration to the Next: Changes Affecting U.S. Sanct

One Administration to the Next: Changes Affecting U.S. Sanctions and Export Controls | Bryan Cave Leighton Paisner


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While the Trump Administration ended with a continuing flurry of activity affecting U.S. sanctions and export controls, with several actions affecting parties in China and Hong Kong, the Biden Administration is taking a slower approach to changes regarding a range of export control and economic sanctions measures. 
Changes Introduced in the Waning Days of the Trump Administration
Among the last activities of the Trump Administration affecting economic sanctions and export controls were several additional designations of parties in China and Hong Kong.  Six additional Hong Kong and Chinese officials were designated as Specially Designated Nationals and Blocked Persons (“SDNs”) on 15 January 2021 pursuant to Executive Order (“EO”) 13936.  In addition, the U.S. Department of Commerce added China National Offshore Oil Corporation (CNOOC) to the Entity List and Chinese company Skyrizon to the Military End-User (MEU) List.  These designations subject each party to additional license requirements under U.S. export controls.  Furthermore, nine additional entities were designated by the U.S. Department of Defense on 14 January 2021 as “Communist Chinese military companies” (CCMCs), including Xiaomi Corporation and state-owned plane maker Commercial Aircraft Corporation of China, Ltd. (COMAC).  While the addition of parties to the list of CCMCs does not trigger prohibitions under export controls or sanctions that are immediate, inclusion on the CCMC list does raise a red flag under the MEU restrictions pursuant to Section 744.21 of the Export Administration Regulations that can trigger additional license requirements.  Moreover, such listing triggers investment restrictions for U.S. persons that go into effect 60 days after the date of listing, although there is a one year period to allow U.S. persons to divest from such parties if they are already invested.   

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