On Saturday, Beijing had passed a new law which in effect would curb out sensitive exports, pointing towards a China move that largely coincided with a number of US sanctions on Chinese holdings including a new decree that would prevent US consumers and industries to conduct business with China-borne entities without authorizations, as tensions appeared to be escalating over the Sino-US trade frontiers.
In point of fact, the law which would be applied to all Chinese companies conducting businesses overseas, had been passed on Saturday in China’s National People’s Congress Standing Committee citing national security issues, while according to the Saturday decision, the law would come into action on December 1.
China restricts sensitive exports following a barrage of US bans
In factuality, latest China move to incline a restriction on sensitive exports to specific regions or countries came against the backdrop of a rapid depreciation of its relationship with the world’s No.
1 economy, the United States, while in the latest flashpoint of an in-flame Sino-US trade dispute, Trump Administration had attempted to cut access of China’s WeChat and TikTok for their US consumers, though a US Federal Court had put a stay order over the bans on a momentary basis.
Previously, the Trump Administration had inclined a number of sweeping bans on the world’s No. 1 telco gear maker Huawei Technologies which in effect have nearly crippled Huawei’s fifth-generation network development in the United States alongside its European allies likes of UK, Italy and Germany.
Notably, under the terms of the new law that seems to be echoing the US bans on Chinese-born products and services, China would be able to take “reciprocal measures” on regions or countries which were abusing export controls and threatening the world’s second-largest economy’s national securities and interests.
In tandem, the export control legislation would be applied to a swathe of sectors involving civilians, military personnel, nuclear products alongside technologies and goods related to the country’s national security.
A list of restricted items would be revealed “in a timely manner”, the law said.