Law Firm: New Supply Chain Rules Give China ‘Broad Discretion’ to Penalize Companies, Export Compliance Daily

Export Compliance Daily cited a Morgan Lewis LawFlash written by partner Todd Liao, senior associate Margaret Luo, managing associate Mudan He, and associates Sylvia Hu and Fan Shi on China’s new regulations on industrial and supply chain security and their implications for multinational companies.

Drawing from the LawFlash, the article highlights how the regulations expand China’s regulatory reach beyond traditional anti-sanctions frameworks to encompass ordinary commercial conduct, including supply chain adjustments and compliance with foreign trade laws. The publication notes that authorities may act “based on corporate conduct that may be interpreted as impacting supply chain security,” and that regulators have “broad discretion to interpret what constitutes prohibited conduct.”

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