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.
The new law explicitly allows China to retaliate against a country that violates export controls and endangers national security, although the definition of abuse is not clearly defined.
The regulation would allow Beijing to take “radical positions in terms of trade exports” as it was much broader than similar legislation in other countries.
For instance, the government would be authorised to restrict exports to foreign companies deemed to threaten China’s national security or national interests. It would also require exporters to apply for licenses for export transactions not covered by published control lists that might potentially harm China.