US Tightens Export Restrictions on Chinese Companies, Further Pressuring Beijing

AFP, September 29th, reported that the United States will expand the scope of its trade blacklist, making it more difficult for the companies on the list to obtain certain US products. This new measure mainly targets Chinese companies.

According to a document released by the US Department of Commerce on Monday, September 29th, any subsidiary that is owned by more than 50% by a company on the blacklist will automatically be subject to the same restrictions. Although this change announced by the US applies to all restricted companies, given that Washington has frequently targeted numerous entities within China in recent years, this new regulation is expected to have a particularly significant impact on Chinese companies.

The new rules will take effect on Tuesday, but companies can apply for temporary modifications. The so-called "Entity List" is a list established by the US specifically for companies or other entities deemed to pose a threat to national security or foreign policy interests. US companies wishing to export products to these foreign companies must apply for official licenses. In recent years, due to concerns over Sino-US technological competition, the US has prohibited Huawei from using the Android operating system in its smartphones and suspended the sale of some NVIDIA chips to the Chinese market.

In response, on Monday, China stated that this was an "malicious" act, infringing on the legitimate rights and interests of enterprises, and that this move is another typical example of the US "overly broadening the concept of national security and abusing export controls." China also stated that it would take necessary measures to safeguard the legitimate rights and interests of its domestic enterprises.

The US Department of Commerce stated in the announcement that this rule change aims to "address concerns about circumvention," such as setting up new companies to bypass existing restrictions.

Original: www.toutiao.com/article/1844640116270091/

Statement: This article represents the personal views of the author.