Tannebaum On Worsening U.S.-China Tensions

The video discusses the challenges faced by multinational companies operating in China, particularly in balancing compliance with US laws and potential conflicts with Chinese regulations. It highlights the importance of thorough supply chain due diligence and the role of third-party support in ensuring compliance. The video also explains the different types of sanctions imposed by the US and their impact on companies. A case study of Intel is presented, illustrating the complexities of navigating compliance and media backlash in China.

What is the main challenge for companies operating in both the US and China?

• Reducing operational costs

• Increasing product diversity

• Finding new markets for expansion

• Balancing compliance with conflicting laws

What is a key strategy for companies to ensure supply chain compliance?

• Ignoring supplier practices

• Using third-party diligence support

• Relying solely on internal audits

• Focusing only on cost reduction

What is the focus of the Department of Commerce sanctions?

• Travel bans

• Access to US origin products

• Investment restrictions

• Asset freezes

How do the Treasury Department sanctions differ from those of the Department of Commerce?

• They are more lenient

• They target only European companies

• They involve asset and investment freezes

• They focus on travel bans

What was the reaction in China to Intel's compliance with US laws?

• Government support

• Nationalist backlash

• Increased sales

• Media silence

What potential risk do companies face under China's anti-foreign sanctions law?

• Loss of US market access

• Increased tariffs

• Significant penalties for complying with US sanctions

• Mandatory relocation of headquarters

Why might Intel be in a unique position to stand against human rights issues?

• They are not affected by US laws

• They have limited alternatives

• They have no presence in China

• They have many alternatives