The existing tensions between China and the US are now focused on technology with major Chinese tech companies including Bytedance Ltd, the owner of Tiktok, Tencent Holdings Ltd, the owner of WeChat, and Huawei Technologies Co, founding themselves short of operation in Washington amid the existing technical protection law.
In response, Beijing will enact its technology protection law. This will come after the US enacts laws to contain these big Chinese tech firms by restricting sales of key innovations through export controls.
China will also pass laws restricting the export of sensitive materials that are vital to national security. The country is in a technological competition with the US, and the law will be a vital tool in expanding its policy options regarding access to the technologies that power the modern economy.
The Export Control Act, which regulates the export of sensitive materials and technologies, will apply to all companies, including those invested abroad. The law will help China stand on a similar foundation to the US, which typically uses export regulations and licensing strategies against its adversaries.
Qing Ren, a partner at Global Law firm in Beijing, said the Chinese authorities may have learned a lesson from the US and other countries.
Early reports indicated that China is taking mutual action against certain states or regions that have abused export control measures that have harmed its national security and interests.
It was reported on Thursday that China will also add source codes, algorithms, and technical documents to the checklist and that the country will regulate the export of technologies where it has a competitive advantage, such as 5G technology and quantum communications.
And since rumor has it that Tiktok is partial to be sold to Oracle Corp., it is uncertain that Beijing will allow the export of valuable Chinese technology. As early as August, the deal met a stumbling block after China added voice recognition and recommendation technology, one of the core technologies built into the Tiktok app, to the list of elements to be regulated.
Although China is now planning to enact its technology protection law, the list of items to be inspected is still narrower than the US.
It is clear that the US is generally the boss of China in many areas and that China only offers first-hand technologies for wireless networking and unmanned aerial vehicles. China also limits itself to materials that could be used to make chemical, biological, or nuclear weapons in the United States, according to Ren.
The US has already responded to China’s plan to pass its technology protection law. Officials believe Huawei, a leader in the next-generation network, and its deep involvement in setting international standards could pose a threat to the US and are now halting its free operation in the country.
While China is the world’s largest exporter and overseas sales, it creates millions of jobs and according to Mei Xinyu, a researcher at a research institute under the Chinese Ministry of Commerce, said it should be careful about passing the law.
Lena Wood graduated from John Carroll University in the year 2002. She born and grown up in Dallas but later she moved to Cleveland for Studying. Lena has written for several major publications including Community Newspapers and News Desk. Lena is a community Reporter and also Covers National Topics.