China passes new law restricting 'sensitive exports' including tech

  • China has passed a new law which will apply to all its country’s companies, restricting sensitive exports to protect national security.

    The law was passed on Saturday by the National People’s Congress Standing Committee and is a retaliation against the USA as tensions grow between the nations over technology and trade.

    It will take official effect on 1 December 2020.

    Under the law, China can take “reciprocal measures” toward countries or regions that abuse export controls and threaten its national security and interests.

    RELATED: Twitter applies "state-affiliated media" labels to Chinese and Russian news accounts, but not to the BBC

    Export controls under the law will apply to civilian, military and nuclear products, as well as goods, technologies and services related to national security. A list of controlled items will be published “in a timely manner” in conjunction with relevant departments, according to the law.

    The new law allows Beijing to retaliate against the U.S., which in recent months has attempted to block Chinese technology firms such as telecommunications gear supplier Huawei, Bytedance’s TikTok app and Tencent’s messaging app WeChat on grounds of posing a national security threat, including the data they may possess from operating in the country.

    RELATED: UK government to strip Huawei from 5G networks by 2027

    Companies and individuals who endanger national security by breaching the new export control law, including those outside of China, could face criminal charges. Violations of the law, such as exporting items without a permit, could result in fines of 5 million yuan ($746,500), or up to 20 times the business value of the illegal transaction.

    The new law adds to the growing uncertainty of Bytedance’s deal to sell its video app TikTok to US firm Oracle Corp. In August, China added technologies including voice recognition, text analysis and content recommendation to its list of regulated exports.

    President Donald Trump had earlier ordered Bytedance to sell its US operations of TikTok to an American firm or face a block in the country.

    The new export control laws adds to China’s growing regulatory toolkit that allows it to take action against countries such as the US.

    RELATED: TikTok CEO resigns amid US security pressures to sell app

    Source: Press Association

    About the author

    An article that is attributed to Sync NI Team has either involved multiple authors, written by a contributor or the main body of content is from a press release.

    Got a news-related tip you’d like to see covered on Sync NI? Email the editorial team for our consideration.

    Sign up now for a FREE weekly newsletter showcasing the latest news, jobs and events in NI’s tech sector.

Share this story