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Trade & National Security Restrictions Impacting the Space Industry

Export Controls have long been a critical regulatory hurdle impacting space and satellite companies. Over the last couple of years, the U.S., EU and UK have rapidly expanded trade regulations well beyond export controls to include a broad and complex web of national security-related controls on exports, imports & supply chains, and cross-border investments. Given the space industry’s reliance on advanced technologies with significant military applications, every company in the space industry is impacted by these restrictions. The companies that invest in navigating these restrictions early on in their life cycles will substantially reduce their compliance risks and will have a critical advantage over their competitors. The panel will discuss recent developments and what’s coming in international trade regulations and provide recommendations for navigating the challenges associated with these restrictions.

Export Controls: Despite the U.S. Government’s Export Control Reform initiative ten years ago, commercial spacecraft and related items remain highly controlled under U.S. export control regulations. The control lists are badly in need of updates to account for technological advancements in the commercial space industry over the last 10 years. In October 2024, the Biden Administration announced a complex set of interim and proposed updates to the U.S. export controls for spacecraft, launch vehicles and related technologies. Meanwhile, in Europe and in the UK, the legislators are increasingly expanding the scope of their national security laws to capture a broad range of “sensitive” items and activities and protect critical space industry technologies. In addition, collaboration between the U.S. and European and UK partners is increasing, with government-to-government agreements for commercial launch collaborations and implementation of the AUKUS security cooperation agreement between the U.S., the UK and Australia. – Import Restrictions and Supply Chain Security: During his first administration, President Trump issued an Executive Order authorizing the Commerce Department to impose restrictions on imports into the United States to protect America’s infrastructure and supply chains for Information and Communications Technology and Services (ICTS). In late 2024, the Commerce Department announced complex and burdensome new restrictions on imports of hardware and software for “connected vehicles” from “foreign adversaries” such as China. The Commerce Department plans to issue similar rules for drones and satellites. Once imposed, these restrictions will force space industry companies to maintain full visibility into their supply chains and certify to the U.S. Government that their system do not incorporate components from China or other foreign adversaries. – Cross-Border Investment Restrictions: The U.S. Government also added important new restrictions on cross-border investments but expanding its long-standing “CFIUS” process for review foreign investment into the United States and adding a brand-new review process for “outbound” investment. These cross-border investment controls limit the ability of space industry companies to take advantage of foreign capital, as well as international labor and technology sources. The Hogan Lovells International Trade & Investment team was recently ranked Band 1 Elite by Chambers USA. The panel would be led by Stephen Propst, our partner in Washington, D.C., who has 25 years of experience advising space and satellite industry clients on all aspects of Export Controls. He would be joined by Hogan Lovells Partners Aline Doussin from our London and Paris Offices who also has extensive experience advising space industry clients. We would also invite one or two clients to join.

Date: May 27, 2025 Time: 3:00 pm - 3:55 pm