Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 496

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 496
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 implemented by
the United States. For instance, in response to the tariffs announced by the United States, in 2018 and 2019, China announced it would
stop buying U.S. agricultural products and imposed tariffs on over US$185 billion worth of U.S. goods. Although China subsequently granted
tariff exemptions for certain U.S. products as a result of trade talks and the phase one trade deal with the United States, it is uncertain
whether there will be any further material changes to China’s tariff policies. Any further actions to increase existing tariffs
or impose additional tariffs could result in an escalation of the trade conflict, which would have an adverse effect on manufacturing,
trade, and a wide range of industries that rely on trade, including logistics, retail sales, and other businesses and services, which
could adversely affect our business operations and financial results.

Additionally,
China has issued regulations to give itself the ability to unilaterally nullify the effects of certain foreign restrictions that are
deemed to be unjustified to Chinese individuals and entities. The Rules on Counteracting Unjustified Extra-territorial Application of
Foreign Legislation and Other Measures promulgated by the Ministry of Commerce (“MOFCOM”) on January 9, 2021 with immediate
effect, provide that, among other things, Chinese individuals or entities are required to report to the MOFCOM within 30 days if they
are prohibited or restricted from engaging in normal business activities with third-party countries or their nationals or entities due
to non-Chinese laws or measures; and the MOFCOM, following the decision of the relevant Chinese authorities, may issue prohibition orders
contravening such non-Chinese laws or measures. Furthermore, on June 10, 2021, the Standing Committee of the National People’s
Congress of China promulgated the Anti-foreign Sanctions Law, which came into effect on the same day. The Anti-foreign Sanctions Law
prohibits any organization or individual from implementing or providing assistance in implementation of discriminatory restrictive measures
taken by any foreign state against the citizens or organizations of China. In addition, all organizations and individuals in China are
required to implement the retaliatory measures taken by relevant departments of the State Council. Since the aforesaid laws and rules
were newly promulgated, there exist high uncertainties as to how such regulations will be interpreted and implemented and how they would
affect our business and results of operations or the trading prices of our Shares.

The
institution of trade