Ever-Expanding U.S. Export Controls and the Foreign-Direct Product Rule

Last year, the U.S. government expanded semiconductor- and supercomputer-related export controls targeting China. Such expansion includes leveraging the Foreign-Direct Product Rule (FDPR) to expand the scope of foreign-made items that become subject to U.S. export controls and, consequently, its China export restrictions. As demonstrated in the recent blockbuster Seagate US$300 million settlement, not only is it difficult to apply the FDPR correctly, failure to do so can have a significant adverse impact. In a cross-practice panel, partners Soo-Mi Rhee and Nicholas O'Keefe and Jefferies's, Gunjeet Baweja and FTI's Matt Bell discussed:

• Export controls impacting the semiconductor industry
• How to apply the FDPR and what steps companies should be taking now, if not already
• What enforcement trends to expect