China tightens export rules for sensitive tech, boosts power to retaliate against foreign sanctions

China tightens export rules for sensitive tech, boosts power to retaliate against foreign sanctions

China’s broadly defined export control law came into effect on Tuesday, expanding Beijing’s arsenal of countermeasures to trade restrictions imposed by other countries.

The law, first drafted in 2017 and approved in late October, bears resemblance to US Export Administration Regulations, including a list of controlled items like sensitive technology, military goods, dual-use items that have both civil and military uses, and a licence requirement for anyone who intends to export or re-export these goods.

The regulation is widely viewed as a response to United States’ restrictions on Chinese technology firms like Huawei Technologies Co., which has seen access to American technology severed amid a growing tech war between the world’s two largest powers.

“I see the Export Control Law as a milestone for China because this new law provides [it] with the first comprehensive regulatory framework for restricting exports of military and dual-use products and technology for national security and public policy reasons,” said Julien Chaisse, a law professor at City University of Hong Kong