China Extends Export Controls Globally, Blocking Sales of Certain Goods to the US
TMTPOST -- China has taken a significant step to extend its domestic laws internationally by imposing a ban on selling certain goods to the United States, targeting companies both within and outside China.
In a bold application of its new export control rules, China aims to replicate the extraterritorial scope of US and European sanctions. These rules encompass Chinese products and goods containing Chinese components. This week, China announced restrictions on exporting dual-use items—those with both civilian and military applications—to the US military. Additionally, critical materials like gallium and germanium are now prohibited from being sold to the US.
The Ministry of Commerce stated Tuesday that these restrictions will also apply to entities and individuals abroad. “Any organization or individual from any country or region that violates the above provisions and transfers or provides relevant dual-use items originating in the People’s Republic of China to organizations or individuals in the United States will be held accountable according to law,” the ministry said.
This marks China’s first use of its new controls, which apply to items with both civilian and military uses. The regulations, which took effect on Sunday, resemble the US Export Administration Regulations in scope and potential impact. However, according to a report by law firm Covington & Burling, the details on how and when China might invoke these extraterritorial measures remain sparse.
By adopting these new measures, China is asserting its ability to regulate global trade involving its products, a move likely to add further complexity to the strained US-China trade relationship.
More News