Welcome to Red Flags Rising, where we examine how geopolitics and national security are reshaping corporate enforcement and compliance.
In an era where “economic security” drives government intervention through increasingly strict and consequential export controls, economic sanctions, inbound and outbound investment restrictions, and tariffs, legacy mindsets and assessments of enforcement risk create liability p ...
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Mike & Brent revisit Brent's original August 25, 2023, "Fresh Looks" post, "When Loopholes Create Liability Pitfalls: A Fresh Look at Export Controls." They discuss what inspired Brent to write the article (00:40), the Inspur Group controversy (05:38), what legacy perspectives were missing about the compliance and enforcement risks (08:25), parallels to U.S. Foreign Corrupt Practices Act enforcement (12:16), why Mike initially hated Brent's article (13:19), how the risks that Brent highlighted in August 2023 are still relevant today (17:29), the key takeaways for trade compliance professionals (18:29), and the return by popular demand of Brent Carlson's "Managing Up" segment on what trade compliance should explain to stakeholders, management and boards about the risks identified in Brent's article (20:41). Check out Episode 2 for more on Secretary Lutnick's March 18, 2025, remarks at the BIS Update conference (see the show notes for additional reporting) Brent's NYU PCCE Post: https://wp.nyu.edu/compliance_enforcement/2023/08/25/29814/ The entire "Fresh Looks" series: https://www.hugheshubbard.com/fresh-looks More about Brent: https://www.linkedin.com/in/brent-carlson-41ba692/ More about Mike: https://www.linkedin.com/in/mhuneke/
Mike and Brent discuss remarks at the Bureau of Industry & Security's "Update" Conference that started today in Washington, DC (00:00), specifically Secretary of Commerce Howard Lutnick's statement that he would take a hard line against China (02:18), including a "dramatic increase" in enforcement (04:01) and fines (13:45). In the returning segment "Brent Carlson's Managing-Up," Brent identifies key takeaways for trade compliance professionals to share with stakeholders, management, and boards (15:31). The New York Times' initial report by Ana Swanson about Secretary Lutnick's statements is here: https://www.nytimes.com/live/2025/03/18/us/trump-president-news/acce989e-9c02-50cc-9b32-9df39624fd77?smid=url-share Check out Ian Cohen's subsequent reporting for Export Compliance Daily here: https://exportcompliancedaily.com/article/view?search_id=20580&id=2277048 More about Brent: https://www.linkedin.com/in/brent-carlson-41ba692/ More about Mike: https://www.linkedin.com/in/mhuneke/ Mike & Brent's "Fresh Looks" series: www.hugheshubbard.com/fresh-looks
In the launch of Red Flags Rising, Mike and Brent explain the concept and purpose of the pod (00:00), a recent report by Gregory C. Allen of the Center for Strategic and International Studies on "DeepSeek, Huawei, Export Controls, and the Future of the U.S.-China AI Race" (linked below) (01:43), the report's emphasis on backing strong regulations with strong enforcement (04:49) and the recently rediscovered "high probability" knowledge standard under the U.S. Export Administration Regulations (06:50), whether and how the Commerce Department's enforcement capability is impacted by recent policy and personnel decisions (11:00), parallels to the U.S. Foreign Corrupt Practices Act (13:54), and conclude with the first-ever "Brent Carlson on Managing Up" segment, providing practical tips on what trade compliance professionals can do to explain to stakeholders, the c-suite, and boards the value proposition of export controls compliance today (19:43). Gregory C. Allen's Report: https://www.csis.org/analysis/deepseek-huawei-export-controls-and-future-us-china-ai-race Brent & Mike's "Fresh Looks" series: https://www.hugheshubbard.com/fresh-looks More about Brent: https://www.linkedin.com/in/brent-carlson-41ba692/ More about Mike: https://www.linkedin.com/in/mhuneke/
