The United States said on Monday it will impose new restrictions on exports to China to keep semiconductor production equipment and other technology away from Beijing’s military, reported Reuters.
The new rules will require licenses for US companies to sell certain items to companies in China that support the military, even if the products are for civilian use. They also do away with a civilian exception that allows certain US technology to be exported without a license.
The rules, which were posted for public inspection and will be published in the Federal Register on Tuesday, could hurt the semiconductor industry and sales of civil aviation parts and components to China.
“It is important to consider the ramifications of doing business with countries that have histories of diverting goods purchased from US companies for military applications,” Commerce Secretary Wilbur Ross said in a statement.