Articles Posted in Trade sanctions

Global-economy-risks-300x150Compiling a list of the top 10 global risks to the economy in 2019, the Economist Intelligence Unit is forecasting a number of active threats that could lead to a lack of stability and security. The EIU believes that these risks will grow worse before there is a chance of them getting better.

Here are the 10 risks listed by the EUI:

  1. Recession from U.S. corporate debt burden

American SuperConducter Inc.A Chinese company, Sinovel Wind Group Co., has been ordered to pay American SuperConducter Inc. (AMSC) $57.5 million after being convicted of multiple charges regarding the theft of proprietary software. This theft resulted in substantial losses for AMSC, including $800 million in revenue and $1 billion in stock market value. Today, the Chinese company has recently made its last installment payment of the agreed-upon settlement, however, the trade theft first began in 2011 in what was expected to be a profitable partnership between the two companies.

Initial Partnership

Originally, AMSC and Sinovel Wind Group Co. worked together in what seemed like a mutually beneficial business partnership. The agreement was that Sinovel Wind Group Co. would produce windmills and purchase $800 million in software from AMSC to control and operate the windmills. However, in 2011, Sinovel Wind Group Co. abruptly ended their agreement and claimed that they no longer needed the software from AMSC to control their windmills.

 The Dutch aerospace firm Fokker Services B.V. violated  the Iranian Transactions and Sanctions Regulations and Sudanese Sanctions Regulations by exporting aircraft spare parts to Iranian customers that it either procured or had repaired in the United states specifically to fill an Iranian customer order.The U.S. Treasury has fined  Fokker Services $21 million for the violations but a Federal Judge may not accept the settlement, as it appears to little.The Treasury said that the potential penalty could have been up to $51 million, based on the  1,150 specific sanctions violations between 2005 and 2010.

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