BEIJING — China has passed a new law limiting sensitive exports to safeguard national security, enabling Beijing to fend contrary to the U.S. as tensions mount between the sides more than technology and trade.
Under the legislation, China can take”mutual actions” toward regions or countries that misuse export controls and undermine its national security and interests.
Export controls beneath regulations will apply to military, civilian and nuclear goods, in addition to goods, services and technologies linked to national safety.
The law permits Beijing to retaliate from the U.S., which lately has tried to obstruct Chinese technology companies such as telecommunications equipment provider Huawei, Bytedance’s TikTok program and Tencent’s messaging program WeChat on premise of presenting a national security threat, such as the information that they might have from working in the nation.
Companies and people who endanger national safety by breaking up the new export control legislation, such as those outside of China, will face criminal charges. Violations of the legislation, like exporting things with no license, could lead to penalties of 5 million yuan ($746,500), or up to 20 times the company value of the prohibited trade.
The law increases the growing doubt of Bytedance’s deal to sell its own video program TikTok into U.S. company Oracle Corp.. In August, China added technology such as voice recognition, text analysis and articles recommendation to its list of controlled exports.
President Donald Trump had previously ordered Bytedance to market its U.S. surgeries of TikTok into an American company or confront a block from the nation.
The new export control legislation increases China’s rising regulatory toolkit which enables it to take action against nations like the U.S.