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China passes export control law to counter US entity list

New Chinese law restricting exports of sensitive items based on national security grounds takes effect on Dec. 1

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Shipping containers (Pixabay photo)

Shipping containers (Pixabay photo)

TAIPEI (Taiwan News) — China passed a law on Saturday (Oct. 17) restricting exports of sensitive items based on national security grounds, according to Chinese state media.

“China may take countermeasures against any country or region that abuses export-control measures and poses a threat to China’s national security and interests, according to the law,” Xinhua News Agency reported. While the report did not name any countries, the move is seen as a direct response to the U.S. Department of Commerce’s Entity List.

The new Chinese law, which was passed by the National People’s Congress Standing Committee, will take effect on Dec. 1, Xinhua said. Exports that fall under the 11 areas of politics, land, military, economy, culture, society, science and technology, information, ecology, resources, and nuclear are covered by the new law, according to Nikkei Asia.

Items subject to export controls can still be sent abroad as long as permission is obtained from Chinese authorities. Whether items are approved for export depend on eight criteria: national security and interests, international obligations and external commitments, the type of export, the sensitivity of controlled items, the countries or regions they are intended for, the end-users and end-use, relevant credit records of exporting companies, and other factors stipulated by laws and administrative regulations, Nikkei Asia reported.

Rising tensions between the U.S. and China have seen Washington take action against Chinese companies, including Huawei Technologies Co., Bytedance’s TikTok app, Tencent Holdings WeChat, and Semiconductor Manufacturing International Corporation (SMIC), according to Bloomberg. In August, China’s commerce ministry released a revised list of technologies that are banned or restricted for export, Reuters reported.