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China’s legislature passed a new law that controls the export of sensitive goods, services and technologies in the latest move to counter increasing US restrictions on Chinese tech companies.
Analysts said: The new law makes it difficult for US and Chinese tech 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 released a report on the new law, saying: it will take effect on December 1.
The report says: China can take reciprocal action against any country or region that violates export control measures and endangers national security and the interests of the People’s Republic of China based on actual conditions.
The Export Control Act comes amid growing tensions with the United States, and the items controlled include military and nuclear products, as well as 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 the protection of 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 released in June said the law was designed to protect national security by regulating the export of sensitive materials that appear on the watch list.
Tensions between China and the United States have recently escalated and spread to the world of technology, with big names like Huawei and TikTok finding 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 believed to harm Chinese interests, but Beijing has been hesitant to publish the list, as some made clear that it should wait until the American elections.
China remains in a weak position relative to the United States when it comes to important technologies, such as semiconductors.
It seems that China does not want to increase the tension because the United States can still do a lot with the list of entities.
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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