Adjunct Professor Matt Gold was quoted in a Barron’s article about current trade relations between the United States and China.
The U.S. can broadly define how it goes about sanctions to address that complexity. A so-called deemed export is a way for the administration to place restrictions on a chip or other finished good regardless of where it was actually fabricated. That’s because the issue comes down to the transfer of intellectual property. “IEEPA sanctions are often structured such that they preclude a U.S. business from being invested in a business of a third country that’s producing goods or services for the targeted state,” says Matt Gold, an adjunct law professor at Fordham University and former deputy assistant U.S. trade representative. “A sanction could easily preclude the U.S.-based company from sharing [chip]designs,” he says. “They could be blocked from giving that intellectual property to the company doing business with China.”