Grab the Carrots, Avoid the Sticks, and Get Ready for More Transparency

Mike and Brent pick up the discussion from Episode 25 with some further thoughts on the proposed revenue-sharing arrangement between the U.S. government and certain exporters, including what should be anticipated from the U.S. government in terms of increased transparency (01:36), give their take on the Maintaining American Superiority by Improving Export Controls Transparency Act signed into law by the President, including both what it does do and what it doesn’t do (10:27), and provide their takes on the long-running media speculation about a so-called “50% rule” that would extend the Entity List maintained by the U.S. Bureau of Industry & Security (BIS) automatically to subsidiaries or affiliates owned 50% or more by a listed entity (18:53), including questions that the debate raises about what due diligence is being done now on subsidiaries and affiliates of listed entities, and important distinctions between U.S. economic sanctions—from where the 50% rule concept is being borrowed—and U.S. export controls that suggest the rule is better suited for the former than the latter.They conclude with another installment of Brent Carlson’s “Managing Up” (26:25).More about Brent: https://www.linkedin.com/in/brent-carlson-41ba692/More about Mike: https://www.linkedin.com/in/mhuneke/Everything you ever wanted to know about the “high probability” standard: https://www.hugheshubbard.com/fresh-looks