Sanctions and Export Control: Made in China

In another highly interesting and well-presented podcast, Hong describes the difficulties imposed on China by the US in particular, and details China’s response in kind. So much is produced in China, and the variation is only growing. Amongst this, there remains a trade war between the US and China. Each feels threatened by the other. Essentially, everyone has the right to develop. Historically, countries did as they pleased in an effort to expand. Therefore, who has the right to prevent others from doing the same? The evident tension results in a power struggle. If one side tries to control the other, there will be resistance. And the side being controlled has every right to resist and hold their stance firmly. Yet, with this approach, the struggle sees no end.

In terms of trade control, Hong talks about the Entity List of the US Department of Commerce, known commonly simply as the Entity List. This list is a compilation of foreign individuals, companies and organisations that have been marked by the US government to pose a national security concern. If an entity is on the list, there will be restrictions against them concerning exportation and licensing.

In turn, China has its own version called the Rules on the Unreliable Entity List, created in 2020 by China’s Ministry of Commerce. As a result, while Huawei was put on the Entity List, two US defence industry giants were placed on the Chinese list due to weapons sales to Taiwan.

Depending on your perspective, you may or may not agree, but what surely can be agreed is that every party has its opinion and rights, and so what one side might say is not right, another may argue well that it is, and is their own business, and additionally may point out historical facts that could lead one to question the validity of an argument against doing anything that has already been done by countries that now condemn others.

Furthermore, since 2020, China has adopted the Law on Countering Foreign Sanctions, the Law of Export Control, and the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Laws and Other Measures. Together with the Unreliable Entity List, these legal rules constitute Beijing’s toolbox to counter the export control measures, arms sales and sanctions coming from Washington, D.C.