Whichever way November 5 goes, it is likely that export controls enforcement and sanctions implementation will continue to ramp up.  With such a large bipartisan consensus surrounding U.S. export and trade restrictions against China, the steady pace of economic sanctions designations, foreign investment restrictions, and trade controls will likely continue regardless of who will be sitting in the Oval Office come January. 

The Department of Commerce, Bureau of Industry and Security (BIS)  has been stepping up its export control enforcement, particularly with respect to protecting sensitive US technology from ending up in China. The recent $5.8 million dollar fine BIS imposed against Pennsylvania electronics firm - TE Connectivity Corp - and its Hong Kong affiliate for illegally exporting controlled technology to sanctioned military research institutes in China is just one indication of the agency's push for more significant penalties. Assistant Secretary Matthew Axelrod, the top BIS export enforcement official, said BIS has “made clear that all tools, including BIS’s unique administrative enforcement capabilities, would be leveraged to punish those who send even low-level technology to nation-state adversaries if that technology has the potential to further the development of unmanned aerial vehicle and hypersonic weapons programs.” BIS also recently announced the appointment of its very first Chief of Corporate Enforcement - a sure sign that corporate investigations and enforcement will be increasing.  

With such wide bipartisan support for this area, it is unlikely that U.S. government agencies will change their approach when a new administration takes office. Trump, however, has said he wants to eliminate U.S. dependency on China, including in electronics, semiconductors, pharmaceuticals and biotech, so a Trump administration may result in even further tightening of export control regulations against China and its allies.

U.S. companies dealing in these sensitive technologies must take action, if they haven't already, to ensure they are establishing adequate guardrails to protect against noncompliance and potential fines and penalties.