China passes law to restrict exports of sensitive technology

China passes law to restrict exports of sensitive technology

Acknowledged China’s legislature has a new law controlling the export of sensitive goods, services and technologies in the latest move to counter mounting US restrictions against Chinese tech companies.

Analysts said: The new law makes it more difficult for American and Chinese technology companies to do business in each other’s countries, and it also makes it difficult for Chinese companies to operate globally.

And the official Xinhua Service published a report on the new law, saying: It will enter into force on the first of December.

The report said: Can To China To take reciprocal actions against any country or region that violate export control measures and endanger national security and the interests of the People’s Republic of China on the basis of actual conditions.

The Export Control Act comes amid escalating tensions with the United States, and the controlled items include military and nuclear products, in addition to other goods, technologies and services.

During the final review of the legislation, a member of the National People’s Congress suggested that the law should explicitly cover areas such as: source code and algorithms for computer programs.

Another member said: The law should strengthen protection for technologies that China has pioneered in the world, such as 5G and quantum communication.

The final version of the legislation has yet to be announced, but draft proposals published in June said that the law was designed to protect national security by regulating the export of sensitive materials that appear on the watchlist.

Tensions between China and the United States have recently escalated and spread to the world of technology, and big names, such as Huawei and TikTok, found themselves in the war between Washington and Beijing.

The US government has threatened to ban TikTok unless its Chinese parent company ByteDance sells the popular video-sharing app, and the fate of the deal with Oracle and Walmart remains pending.

The Chinese government has quickly drawn up a blacklist that can be used to punish American companies that are believed to harm Chinese interests, but Beijing has hesitated to publish the list, as some made it clear that it should wait until the US elections.

China remains in a weak position relative to the United States when it comes to important technologies, such as semiconductors.

It appears that China does not want to escalate the tension because the United States can still do a lot with the entity list.

In August, China updated its export control list to include the main technologies used by TikTok.

ByteDance said in late September that it had applied for a license to comply with the revised Chinese rules, without providing further information.

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