Insights

On December 19, 2025, the Department of Justice (DOJ) announced a $54.4 million settlement with Ceratizit USA, LLC, a distributor of tungsten carbide products, resolving allegations that the company violated the False Claims Act (FCA) by evading customs duties on products imported from China. This settlement is believed to be the largest ever customs-related FCA resolution, and this high-water mark underscores the government’s heightened enforcement focus on tariff evasion.

In a move that underscores the evolving landscape of global data governance, China announced a new initiative aimed at fostering cross-border data flows. On November 17, Chinese President Xi announced the launch of a “Global Cross-Border Data Flow Cooperation Initiative” while attending the Asia Pacific Economic Cooperation (APEC) leaders meeting in Lima, Peru. The following day, the Cyberspace Administration of China released further details about the initiative, which frames China as a proponent of non-discriminatory and cooperative data policies. However, closer analysis reveals a complex interplay of geopolitical, economic, and regulatory factors behind this initiative.

As the popularity of electric bikes grows, so does the legal and trade obstacles here and abroad. In 2022, over a million e-bikes were in sold in the US. China is a large part of the bike supply chain as about 85 percent of bikes purchased in the US are manufactured in China, and many bike manufacturers rely on China for most, if not all, of their components. And while this figure is staggering, many overlook details regarding the most important component for e-bikes, the battery. With the increased focus on electric vehicles and the escalating trade war, e-bike batteries are often caught up in the mix.

On September 28, 2023, the Cyberspace Administration of China (“CAC”) published the draft Provisions on Regulating and Promoting Cross-Border Data Flows (“Draft Provisions”) for public consultation.

The summer has been anything but slow in the People’s Republic of China. China is leaning into its regulation of emerging technologies, while attempting to strike a balance with its domestic economic priorities. In just the past few weeks, state authorities have issued a slew of draft measures and announced new initiatives – all with significant ramifications for businesses processing data within the PRC. From personal information processing to facial recognition to cross-border data transfers, what follows is a highlight reel of what you may have missed while you were away on vacation, with the comment period for many of these developments closing within the next few weeks.

On September 24, 2021, the Chinese Ministry of Foreign Affairs ("MFA") released the Fact Sheet: U.S. Interference in Hong Kong Affairs and Support for Anti-China, Destabilizing Forces ("Fact Sheet") which sets out a comprehensive chronological list of events detailing the United States' interference in Hong Kong. Click here to read the official translation of the full Fact Sheet. 

On April 28, 2021, the Ministry of Commerce of China (“MOFCOM”) released an updated version of Guiding Opinion of the Ministry of Commerce on the Establishment of Internal Compliance Mechanism for Export Controls on Exporters of Dual-Use Items (“Order No. 10”) which was first published in August 2007 (“Order No. 69”). As an implementing rule of the Export Control Law (“ECL”), Order No. 10 aims to provide companies with “guidance and reference” in their establishment or enhancement of internal export compliance programs (“ECP”) to promote compliance under China’s new export control regime.

Chinese companies, including Chinese subsidiaries of multinational companies, are seeing returns of previously exported goods for many COVID-19 related reasons, including the suspension of contractual obligations under force majeure provisions. China is now helping affected companies with new tax and duty relief. China Customs announced on November 2, 2020, that the State Council has approved tax rebates for goods returned due to COVID-19. For goods that were exported from January 1, 2020 to December 31, 2020, the exporters will not be required to pay import duties, import value-added tax (“Import VAT”), and consumption tax on goods that are returned to China within one year of export (“Qualified Returned Goods”). Export duties paid on the goods will also be refunded to affected exporters.

A proposed law issued by the People’s Republic of China (PRC) on October 21, 2020, the draft Personal Information Protection Law, seeks to impose restrictions on entities and individuals, including those operating outside of China, that collect and process personal data and sensitive information on subjects in China. The proposed law also provides for penalties up to RMB 50,000,000 ($7.4 million) or up to 5 percent of the entity’s or individual’s preceding year’s revenue. The draft law marks China’s first comprehensive system for the protection of personal information and sets forth general rules for the processing and transferring of personal information across China’s borders.

For the first time in nearly two decades, China is revamping its export control regime and issuing its first unified Export Control Law, which combines concepts from more than a dozen existing Chinese laws and related regulations. This alert summarizes the most significant changes from current Chinese export control practice, highlights what may be included in the pending Export Control Law, and comments on anticipated impact on businesses operating in China. We also provide some recommended approaches for companies with China operations (or rely on third parties in China) to consider in advance of implementation of the Export Control Law.