US imposes new rules on exports to China, directs foreign companies to seek approval before shipping goods

28 April, 2020 | newsx bureau

US exports to china World

US has recently imposed stricter restrictions on exports to China and also directs foreign companies to take approval from the US government before shipping goods.

The United States has imposed stricter restrictions on exports to China, which includes civil aircraft components and items related to semiconductors. The new rules will require licenses for US companies to sell certain items to military entities in China, even if those goods are for civilian use. The new rules also eliminate a civilian exception that allows certain US technologies to be exported without a licence if they are for a non-military entity.

“It is important to consider the ramifications of doing business with countries that have histories of diverting goods purchased from U.S. companies for military applications,” Department of Commerce Secretary Wilbur Ross said in a statement. “Certain entities in China, Russia, and Venezuela have sought to circumvent America’s export controls, and undermine American interests in general, and so we will remain vigilant to ensure US technology does not get into the wrong hands,” he added.

The administration also proposed a third rule change that would force foreign companies that ship certain US goods to China to seek approval not only from their own governments but from the US as well.

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The Bureau of Industry and Security (BIS) in the Department of Commerce is responsible for overseeing these export control activities. BIS’s mission is to advance US national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued US strategic technology leadership, the statement read. The actions come as relations between the US and China have deteriorated after the coronavirus outbreak.