From various reports, China is about to release an updated export law bill where it strictly regulates the sensitive export goods that can harm its national security. This is the result of US sanctions levied on Chinese companies amidst that trade war, where Chinese authorities have learned enough to make their own counter weapon.
China’s Drafted a New Export Bill Against US
Trump’s administration in recent times has made a significant effort to dent China’s economy. The US government levied sanctions and extra tariffs against Chinese goods and even added some companies like Huawei to entity list (blacklist). These actions led China to amend its own export bill to counterattack the countries like the US in critical times.
According to Xinhua News Agency, China’s preparing a draft bill that aims at reciprocal actions against any region or a country that has “abused export control measures and damaged China’s national security and interests.” Though didn’t mention anything, this is clearly aimed at the US, at least for now.
Also, another report by the says the draft bills includes applying restrictions to algorithms, suggested source codes and technical documents. These will be added to the “controlled items“, where the Chinese government has complete power in regulating them citing national security reasons.
This could give China more power in the world technology realm, where it maintains an important footprint. The country’s tech giants like Huawei, Tencent and ByteDance are making some of the world’s popular apps and services. They add significant value to the Chinese economy in terms of money and image. Thus, China wouldn’t lose them so easily.
Moreover, Huawei, the maker of cutting-edge technologies has taken a really hard hit by the US by being added to the entity list. Supplying of chips, software and other services were barred by the US to cripple it. Now that the company is struggling with its smartphone business, it’s still thriving in 5G space.
Though the US is far ahead in most of the technologies, China is maintaining its firm position in a few critical areas like 5G and quantum communications. While Huawei is leading 5G, a company called DJI is leading the unmanned aerial vehicle space, by having almost 75% of the world’s drones.