4 - Export Restrictions in the Global Supply Chain

Summary

With the internationalisation of production processes and multiplication of jurisdictions involved in these processes, global supply chains can be easily interrupted through weakest links. The fragmentation of production processes and internationalisation of supply chains complicatecoordination and risk management, which necessitate a fresh look of the governance mechanism. Competition law plays a critical role in ensuring supply is not disrupted through anti-competitive practices, such as export-cartel and abuse of dominant power in horizontal and vertical agreements. In linking export restrictions to investment law and policies, two types of investment are most relevant: resource-seeking and strategic asset-seeking investments. The interaction of export restrictions and investment law and policies can be observed from two perspectives: producers v. consumers; outbound v. inbound. A country imposing export restrictions on resources or strategic assets, such as critical components, may use trade and investment measuresm) simultaneously to prevent foreign countries or enterprises from accessing them.