China's extraterritorial use of export control law draws concern

Beijing's willingness to leverage trade for foreign influence requires scrutiny

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A containership in Shenzhen, China, in September: There are concerns that Beijing's export control law could also cover raw materials produced in China, processed overseas then exported to a third country. © Reuters

Citing national security, China on December 1 enacted an export control law that tightens restrictions on shipments of strategic goods. Foreign companies are concerned that they could be greatly affected if Beijing further expands the scope of export controls. Governments and economic groups should strongly urge China to address these concerns and apply the law in a transparent manner.

The products restricted by the first round of export controls were only those related to data encryption technology, but more are expected to be affected in the future. The text of the law only spells out the principles involved, not the goods themselves. Foreign companies are struggling to cope with the lack of detailed policies.

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