China Hits Back at US Sanctions with New Export Control Rules

China Unveils Export Control Regulations Amid US Sanctions

In a move seen as a response to intensified US sanctions, China has introduced a set of export control regulations for dual-use items, which can be used for both civilian and military purposes. The regulations, set to take effect on December 1, aim to “safeguard national security and interests” and promote global cooperation on non-proliferation.

A Strategic Move Ahead of President Xi’s Russia Visit

The unveiling of the regulations comes ahead of President Xi Jinping’s trip to Russia, where he will attend the BRICS summit in Kazan. The move is seen as a strategic attempt by China to demonstrate its commitment to regulating trade in dual-use goods, amid US allegations that Chinese companies have been supplying such goods to aid Russia’s war effort in Ukraine.

Key Features of the Regulations

The new regulations will establish a licensing system for the export of dual-use items and create a list of restricted goods. Exporters of such goods will be required to disclose the ultimate users and intended use of the exported goods. The regulations are expected to focus on items such as rare earths, critical minerals, and materials and technology that could be used for aerospace applications.

A Tit-for-Tat Approach?

Experts see the ramped-up regulation as a tit-for-tat approach to trade in dual-use goods, with China responding to US sanctions by strengthening its own export controls. However, some analysts suggest that Russia may be exempted from the possible export controls, given the close relationship between the two nations.

Implications for Global Trade

The introduction of the regulations is likely to have significant implications for global trade, particularly in the context of the ongoing US-China trade tensions. As China continues to assert its position as a major player in global trade, the regulations are seen as a key step in demonstrating its commitment to responsible trade practices.

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