State Council Provisions on Industrial and Supply Chain Security

China's State Council released two sets of regulations in late March and early April designed to protect supply-chain security and counter foreign extraterritorial jurisdiction, raising concerns among multinational corporations that routine business decisions could trigger retaliation. The vague provisions in these regulations could expose foreign companies to penalties including import/export restrictions, fines, asset seizures, and visa cancellations for complying with U.S. sanctions or making supply-chain adjustments.