CEP Magazine (November 2020)

On August 28, China’s Ministry of Commerce issued an update^[1] to the technologies that require government approval before they can be exported or sold. The 23 technologies include space materials, 3D printing, encryption, large-scale high-speed wind tunnel design, and others. Notably, the restrictions also cover “‘technology based on data analysis for personalized information recommendation services,’”^[2] which analysts believe cover Bytedance’s TikTok video-sharing app, which is at the center of a national security debate between the United States and China.

The export restrictions require, at minimum, a 30-day review by relevant Chinese authorities. Further requirements may be revealed at a later date. The new rules signal an escalation in the ongoing economic and political conflict between the US and China and will have an impact on foreign companies doing business with Chinese tech companies, or those investing in Chinese innovative technologies.

1 China’s Ministry of Commerce, “Catalogue of China’s technology-related export restrictions and export bans,” Adjusted Content, August 28, 2020.
2 Paul Mozur, Raymond Zhong, and David McCabe, “TikTok Deal Is Complicated by New Rules From China Over Tech Exports,” The New York Times, August 29, 2020, https://nyti.ms/3hO7Ucz.

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