Trade
Professional legal research in Trade.
International Trade Risk Response Under the Hormuz Strait Blockade
Affected by the Iran-Israel conflict, on February 28, 2026, Iran announced the closure of the Hormuz Strait, directly impacting the performance of international trade contracts. Attorneys Jin Zuopeng, Sun Ming, and Cui Shaolong analyze risk points for international trade enterprises from a practical perspective by examining UK law, CISG, Hague Rules, and Incoterms, providing actionable response plans including practical approaches to four high-frequency dispute scenarios and contract clause optimization recommendations.
Hesai Technology Loses Lawsuit Against U.S. Government: Judicial Logic Raises Compliance Concerns for Global Enterprises
In July 2025, the U.S. District Court for the District of Columbia dismissed Hesai Technology's lawsuit against the U.S. Department of Defense, upholding the DoD's inclusion of Hesai on the 1260H "Chinese Military Companies" list, ruling that it does not violate the Administrative Procedure Act. The court found that LiDAR technology has dual-use (civil-military) applications, and the company is located in an officially designated "military-civil fusion" industrial park, which already satisfies the statutory criteria of being a "military-civil fusion contributor" and a "contributor to the Chinese defense industrial base." The DoD's determination was supported by substantial evidence, and the process did not cause substantive harm to Hesai. Hesai strongly objected to the ruling, emphasizing that its products are solely for civilian use with no military affiliation, and has filed an appeal to the federal circuit court. The ruling highlights the DoD's broad discretion in military-related determinations. Inclusion on the list can lead to severe consequences such as prohibition from U.S. defense contracts, OFAC sanctions risk, Military End User (MEU) designation, and reputational damage. The article warns that this standard of "substituting potential military use for actual military supply facts" may broadly affect multinational tech companies operating in China, and recommends that relevant enterprises closely monitor compliance developments and actively defend their rights through administrative appeals or litigation.
BIS Entity List Update: Over Half of Newly Listed Entities Are Chinese
The U.S. Department of Commerce's Bureau of Industry and Security (BIS) published a final rule adding entities to the Entity List on September 12, 2025. The rule adds 32 entities across multiple countries and regions, with over half being Chinese entities, based on BIS's determination that these entities participated in or may participate in activities contrary to U.S. national security or foreign policy interests.
New Smuggling Trends and Criminal Risk Prevention After Hainan's Customs Closure
On December 18, 2025, the entire island of Hainan Free Trade Port will officially begin closed customs operation. After the closure, the "first-line liberalization, second-line control" policy will be implemented. The list of zero-tariff items will significantly increase to nearly 6,600. Processed products with 30% value-added will be exempt from tariffs when sold to the mainland. The scope of beneficiaries will be comprehensively expanded, import restrictions will be relaxed, and bonded maintenance will be opened. While improving trade facilitation, the new policies will also give rise to new smuggling risks, mainly including intensified "daigou and arbitrage" of zero-tariff goods, falsely reporting processing value-added ratios to obtain tariff exemptions, misreporting or concealing prohibited/restricted goods, illegally smuggling zero-tariff goods out of the island, and using "three-no" vessels or cruise ships/yachts for smuggling. Individuals should enhance their awareness of prevention and refrain from lending duty-free quotas or participating in "daigou and arbitrage." Enterprises need to establish sound compliance and internal control mechanisms, strictly account for processing value-added data, dynamically track lists of prohibited/restricted items, ensure traceability of goods' trajectories, carefully choose transportation means, and appropriately handle customs audits by utilizing lenient policies such as voluntary disclosure.
US Anti-Dumping/Countervailing Duty Investigation on Laos, Indonesia, and India Solar Products: How Should Enterprises Respond?
On July 16, 2025, the American Alliance for Solar Manufacturing and Trade (AASMT) submitted anti-dumping and countervailing duty (AD/CVD) petitions against imports of solar products from Indonesia, Laos, and India to the US Department of Commerce.
In-Depth Analysis of the UK's Latest Sanctions Compliance Guide: How Chinese Enterprises Can Address New Cross-Border Compliance Challenges
On June 27, 2025, the UK Foreign, Commonwealth & Development Office issued sanctions compliance guidance for non-UK businesses, aimed at helping third-country enterprises identify and avoid circumventing UK sanctions on Russia. The guidance clarifies typical circumvention scenarios such as indirect transportation and concealing end users, and notes that non-UK enterprises participating in circumvention activities or having specific connections to the UK may face serious consequences including asset freezes and loss of international cooperation opportunities. UK sanctions on Russia primarily cover financial sanctions (freezing designated persons' assets) and trade sanctions (embargoed goods and services restrictions). The guidance recommends that Chinese enterprises strengthen pre-transaction due diligence and "red flag" screening, establish compliance management systems incorporating high-level coordination, contractual safeguards, and dynamic monitoring, and continuously track updates to the UK sanctions list to effectively mitigate compliance risks.
Ten Key Points for Safe "Going Global" of Cross-Border E-Commerce
Attorney YE Peng systematically reviews the development opportunities and compliance guidelines for Chinese cross-border e-commerce going overseas. It first distinguishes between cross-border e-commerce and traditional foreign trade, then analyzes industry growth prospects. Practical recommendations are provided on mainstream platform selection, logistics model configuration, customs declaration procedures, and overseas warehouse tax rebate processes. It also details the latest Chinese government support policies and regulatory and taxation requirements in key markets including the US, Europe, and Southeast Asia. Finally, addressing multiple risks faced by sellers in policy, logistics, payment, and intellectual property, the article proposes core strategies including brand building, localized operations, tax and data compliance, aimed at providing comprehensive guidance for enterprises to expand overseas markets safely and efficiently.
How Can Chinese Cross-Border E-commerce Break Through Against US Recent Tariff Policies?
In recent years, China's cross-border e-commerce industry has flourished, becoming an important force driving international trade growth. However, with changes in international situation, recent US tariff policies have created severe challenges for Chinese cross-border e-commerce enterprises in the US market.
Analysis of US Export Control and Sanctions Impact on China's Low-Altitude Economy Enterprises
As low-altitude economy products are progressively applied in real-world scenarios, the United States has逐年加强对相关物项的出口管制, mainly through BIS according to EAR placing relevant enterprises on Entity List, expanding controlled items scope, and increasing penalties.
Impact of Tencent Being Listed on Chinese Military Enterprise List and Reference Significance of Xiaomi Case
Background: On January 7, 2025 (U.S. time), the U.S. Department of Defense released the latest Notice of Availability of Designation of Chinese Military Companies, adding Tencent, CATL, and others to the Chinese Military Companies list. The list now contains 134 companies, nearly doubling from the 73 companies listed in January 2024.
Overview of Laos Investment Law and Risk Prevention (I)
With its advantageous geographical location and role as a node in the "Belt and Road" initiative, Laos has become an important destination for Chinese enterprises investing in Southeast Asia, focusing on energy, mining, agriculture, and infrastructure. This article systematically reviews the core legal and practical framework for foreign investment in Laos: foreign investors may establish enterprises through joint ventures or wholly-owned forms, with 100% shareholding generally permitted except in specifically restricted industries; Special Economic Zones offer multiple policy incentives including corporate income tax reductions, long-term land leases (up to 99 years), customs duty exemptions, and one-stop administrative services; concession activities mainly target large-scale infrastructure and resource development projects, requiring feasibility assessments, agreement signing, and other statutory procedures; intellectual property is comprehensively protected under the 2023 revised Intellectual Property Law, covering trademarks, patents, industrial designs, and electronic works; labor and employment strictly follow the Labor Law, with clear provisions on working hours, mandatory social insurance, and foreign worker quotas, requiring enterprises to focus on compliance; land is state-owned, and foreign investors primarily obtain usage rights through leases (typically 30-50 years) or concessions, with strategic projects eligible to apply for rent reductions according to law. Overall, Laos's legal system is open to foreign investment with comprehensive supporting incentives, providing Chinese investors with clear policy direction and broad market opportunities.
Risk Analysis and Legal Changes from the Perspective of International Trade
Attorney ZHANG Huimin systematically reviews the transaction models, commercial and regulatory participants, typical import/export processes and corresponding legal risks of international trade, and comprehensively analyzes the multi-layered legal sources consisting of international trade practices, international conventions, standard contracts, and domestic laws of various countries. It focuses on the latest developments in China's international trade legal system, including the complete abolition of foreign trade operation registration to deepen institutional opening up, aligning data compliance and rules with digital trade trends, constructing countermeasure legal frameworks such as export controls and anti-foreign sanctions, and unifying foreign-related adjudication standards through publishing typical cases. The article aims to provide international trade participants with practical references for risk identification, compliance management, and legal response.
Analysis of Enforcement Difficulties After Default of Sino-Offshore USD Bonds
Attorney CHEN Yiqian and LIN Jinghuan and CHENG Jingda, based on typical 2023 judgments from the Cayman Islands, Hong Kong, and BVI concerning defaults on sino-offshore USD bonds, systematically analyzes whether bond investors (especially indirect investors holding beneficial interests through clearing platforms) have the standing to directly file winding-up petitions against the issuer after default. The Cayman and Hong Kong courts both adopted a negative stance, finding that investors only have economic interests rather than direct contractual rights, do not qualify as statutory "creditors" or "contingent creditors," and cannot derive authorization from platform operating rules alone—strictly requiring adherence to the集中 exercise mechanism stipulated in the issuance documents. In contrast, the BVI court reached a different conclusion, based on a broader definition of "creditor" under local insolvency law and consideration of commercial reality, recognizing investors' direct standing. The article emphasizes that the divergence in judgments across the three jurisdictions reflects different value trade-offs between contractual certainty, judicial intervention, and passive investor protection, advising practitioners to carefully review governing law, specific issuance document terms, and authorization chains during跨境 bond investment due diligence, and to closely monitor subsequent judicial developments.
How Do Transacting Parties Bear Losses After Cross-Brade Trade Remittance Fraud?
In cross-border trade, fraudsters often carry out remittance fraud by hacking email accounts, cloning email addresses, and tampering with payment information. Due to the difficulty of cross-border asset recovery, losses must be allocated among the transacting parties. When determining liability, courts apply strict liability as the primary principle under the Civil Code, supplemented by fault liability. The core of liability allocation lies in examining whether each party has fulfilled its "duty of reasonable care," comprehensively considering whether the payer and its agent have fulfilled the obligation to verify abnormal payment information through multiple channels, whether the payee has properly maintained email security, and whether obvious red flags of fraud were ignored. Ultimately, losses are allocated based on each party's degree of fault.
Analysis of Cross-Border E-commerce Foreign Exchange Compliance: Lessons from Shanghai Bank's 100 Million Yuan Fine
Recently, the Shanghai Branch of the State Administration of Foreign Exchange published an administrative penalty decision against a Shanghai bank, imposing a warning and fines of nearly 100 million yuan for violations in foreign exchange transactions including spot exchange, foreign currency wealth management, and guarantee-backed lending. This article examines compliance issues in cross-border e-commerce foreign exchange transactions.