I have previously commented on the risks of new trade restrictions in relation to China – including new regulations on the sale of US technology (see more here). The situation has not been very clear (to say the least) so it is interesting to see the latest news from China Law Blog, which has posted a notice about a free webinar that will be put on by the The United States Department of Commerce and the China Business Information Center to:
“explain the proposed new regulations on dual-use items exported or re-exported to China. The webinar will take place on September 14, from 1:15 p.m. through 2:00 p.m., EDT. It will be led by Matthew S. Borman, Acting Assistant Secretary, responsible for implementing the Bureau of Industry and Security’s controls on the export of dual-use items for national security, foreign policy, nonproliferation, and short supply reasons…”
It sounds like an interesting discussion, and I will try to tune in. It will be especially interesting to see how commonly available technologies might be affected, and how the rules might have a negative impact of the US trade deficit with China. As I reported in my earlier post “the new proposed rule signals a breathtaking rollback of export licensing policy to Cold War levels” and:
“The fear in Washington is the commercially-available technology could be used to help modernize China’s military. The reflected fear in boardrooms is that buyers will simply “design out” US parts, with a big loss for US business. The political positioning is pretty aggressive to say the least, and would not do much for “positive engagement” with China”
Hopefully an open debate will help to clear up (for better or for worse) the practical impact of these rules for US businesses. After all, we can but hope!