Industry Should Prepare for Export Controls Resulting From Supply Chain EO
While the Biden administration has made clear its intentions to pursue stronger export controls over advanced semiconductor-related equipment, companies should also be prepared to see potential export controls over a range of other sectors that the U.S. deems to be too reliant on China, Baker McKenzie trade lawyer Kerry Contini said. Contini, speaking during a July 14 Baker McKenzie conference, pointed specifically to President Joe Biden’s February executive order to address supply chain issues (see 2102240068), which mentions the medical and agricultural sectors as well as the chip industry.
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In response to the order, the Commerce Department recommended export controls that “address vulnerabilities” in the semiconductor and other technology supply chains. But Contini also said companies “can expect increased government intervention” and “export control measures in other sectors where there are expressed U.S. government concerns involving over reliance on China.” She noted that the executive order identified a “whole bunch of other supply chains that are considered to be critical,” including pharmaceuticals and agricultural goods. “So I suggest that companies that are players in these supply chains keep in mind the possibility of additional measures, including possibly export controls, down the line,” she said.