Published on : Sep 02, 2015
A report plan has been sanctioned by the US President Barack Obama to China for cyber-related offenses. Some of the US economic sanctions programs have had restricted practical impact on the US tech companies. However, such companies are in need to be specifically mindful of whom they are planning to partner with. This was commented on Tuesday by the partner at the international business law firm.
The plan will impose arduous diligence needs on the US technology companies who wish to collaborate with the Chinese businesses, said member of the Lawrence Ward to Sputnik.
As reported earlier in Washington, the recent days where the US media outlets have been reported, many unnamed government officials are cited in this act. According to them, the Obama administration is arranging for a unique package consisting of economic sanctions against the several organizations in China involved in cyber-theft.
The US Treasury’s Office of Foreign Assets Control (OFAC) needs several companies to conduct vigorous due diligence to make sure partners do not meet the criterion for the (SDNs) sanctions list. The list has gotten more complex by the ownership structure of Chinese organizations.
This factor is expected to be the case in China where ownership chain of private companies is often convoluted.
The OFAC rules are going to make the sanctions list if one or more SDNs possess 50% of the company, added Ward.
Obama issued an executive order that sanctioned the State and Treasury Departments to charge sanctions against the engaging critical malicious cyber-enabled activities.
No names of the specific individuals or entities were taken by the President back in April. It was widely assumed that the executive order is a way to sanction the Chinese companies and various individuals involved in the cyber-warfare kind of activities, said Ward.
However, penalizing Beijing for cyber-theft activities remains an option.