Dan Kelly and Zack Hadzismajlovic examine two important regulatory changes affecting global trade that could have a significant impact on your business.
First, the lawyers take on recent changes to the Federal Acquisition Regulation that prohibit all companies in the government supply chain from using telecommunications and video surveillance equipment and services from a growing list of Chinese companies. Yes, you heard that right. Any company that sells anything to the Government, either directly as a prime contractor or indirectly through the supply chain, will lose its Government market share if it uses these products from the published list of Chinese companies. Due diligence will be essential because the changes come with a certification of compliance.
Second, the attorneys will address new mandates by the Committee on Foreign Investment in the United States (CFIUS). These mandates impose a disclosure and approval regime for certain foreign investments in any US business that develops, designs and/or produces critical technologies regulated by ITAR, EAR, and other export control laws and regulations. This rule creates greater hurdles for established and early-stage companies courting foreign investors whose products and services include critical stage technology. Knowledge is key! The lawyers review steps that must be taken before any planned acquisitions or equity additions involving foreign buyers or investors.