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China Adds New Export Restrictions in Latest Trade Dispute Move

October 19, 2020, The Wall Street Journal

Yan Luo is quoted in The Wall Street Journal regarding China’s new export restrictions. Ms. Luo says, “With recent events, China feels a greater need to have this export law in place.” Chinese authorities feel that export-control measures have been used against Chinese companies and they need a way to reciprocate. “The precise point is we don't know how they want to apply this,” she adds.

Ms. Luo pointed to a clause in China's new law that allows for punishment of organizations and individuals outside the country's borders, meaning Beijing could use it to try to limit goods it deems sensitive being sold from anywhere in the world. It potentially brings China in line with the U.S., which requires foreign companies selling certain products containing U.S. components to Chinese firms like Huawei to apply for permission from U.S. regulators.

The law also allows China to take reciprocal measures if another country abuses its export controls to endanger China national interests. “That's sort of a retaliation clause,” she adds.

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