Amid rising tensions between the United States and China over trade, technology, human rights and intellectual property rights, the Communist Party-controlled Standing Committee of the National People’s Congress (NPC) on Saturday passed the Export Control Act, which allows China to take reciprocal measures against any country or region that “abuses export control measures to endanger China’s national security and interests,” depending on the actual situation. The new law, which goes into effect Dec. 1, will allow Beijing to retaliate against the United States for sanctioning Chinese companies on national security grounds.
According to Chinese official media, the implementation of export controls is a common international practice to fulfill international obligations, such as non-proliferation, and is an important means to safeguard national security and interests.
The law will apply to all Chinese companies, including foreign-owned enterprises, and will govern the transfer of controlled items from China to foreign countries, as well as the provision of controlled items by Chinese citizens, legal persons, and unincorporated organizations to foreign organizations and individuals.
The new export control law provides that the state export control authorities will, as a matter of policy, issue a list explicitly listing the controlled items, and may also issue a public notice imposing temporary controls on goods, technologies, and services not on the list. If the export operator knows or should know, or has been notified by the relevant authorities, that the items are likely to pose a risk to national security and interests, the export control will also be applied to the non-listed, non-temporary control items.
The law also regulates the provision of export control information outside the country, and stipulates that if the provision of such information outside the country may jeopardize national security and interests, it shall not be provided.
The CCP’s latest export control law also provides for the necessary extraterritorial application of the law. Foreign organizations and individuals that violate the law, endanger China’s national security and interests, or impede the fulfillment of international obligations, such as non-proliferation, will be dealt with in accordance with the law and prosecuted for legal liability, and can be fined up to 5 million yuan or 20 times the value of the “illegal transaction.
China’s current export control measures include the “China Export Restriction Catalogue” and the “List of Unreliable Entities.
The Associated Press reports that the CCP’s new law allows Beijing to retaliate against the United States. The U.S. has recently sought to block Chinese network infrastructure giant Huawei, Byte Jump’s TikTok application, which is the international version of Shakespeare, and Tencent’s “The report also said that China’s new export control law would add uncertainty to negotiations between Byte Jump and U.S.-based Oracle over the sale of TikTok.
The report also said that China’s new export control law will add uncertainty to negotiations between ByteDance and U.S.-based Oracle Corp. over the sale of TikTok. In August, China added technologies such as voice recognition, graphical analysis, and content recommendation to its export control list.
Analysts say that this law provides additional controls and legal pretexts for Chinese authorities to take retaliatory action against the United States.
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