Beijing will establish a mechanism for export control of sensitive technology on the grounds of “national security risks,” raising the spectre of tit-for-tat retaliation amid an escalating trade dispute with the United States, reported the Financial Times.
The export control mechanism — which appears to be based on a draft law first proposed by the Ministry of Commerce two years ago — would “prevent and resolve national security risks,” said Xinhua News Agency. The new Chinese regulations could prove similar to US export controls on strategic technologies, covering military equipment, some encryption technologies, and some dual-use products.
While covering nuclear and military materials, the draft Chinese law also includes latitude for retaliation if China is subject to discriminatory export control measures by any other country, according to a 2018 report by consultancy PwC.
The mechanism will be developed by the National Development and Reform Commission under the guidelines of China’s national security law, passed in 2015, reported Xinhua.