Faculty Notes

Prof. Julian Ku Quoted in PolitiFact Story on President’s Forcing US Firms Out of China

Julian Ku, Maurice A. Deane Distinguished Professor of Constitutional Law, Faculty Director of International Programs

Could Donald Trump force US firms out of China? Pretty much
By Jon Greenberg
PolitiFact
Aug. 27, 2019

Excerpt:
The Congressional Research Service, the nonpartisan policy arm of Congress, says that since 1977, presidents had declared national emergencies under the act 54 times against countries including Iran, Myanmar, Russia and more. In 1979, President Jimmy Carter froze the assets of the Iranian government, and then expanded that to block the transfer of all goods, money, or credit destined for Iran.

That second power is key.

“In theory, the President could block all financial and business transactions between those subject to U.S. jurisdiction — U.S. citizens, U.S. residents, and any company operating in the United States — and China,” said Hofstra University law professor Julian Ku. “This would not ‘order’ U.S. companies to leave China, but it would render those investments in China much less valuable economically or completely value-less, which would force U.S. companies to leave China.”

Read the full article on the PolitiFact website.

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