(Source: South China Morning Post, 2 Aug 2018.) [Excerpts.]
Trade tensions continue to rise between the world’s two largest economies as the US added dozens of export control restrictions to Chinese companies and added 44 Chinese entities to its export control list for posing “significant risk” to US national security or foreign policy interests. These controls will limit access to products that the US commerce department believes could have dual military or civilian use and may deny companies key components such as nuclear materials, telecoms equipment, lasers, and sensors.
The new restrictions impact key parts to China’s Made in China 2025 policy including air defense systems, satellite communications systems, semiconductors, and aerospace products. The Made in China 2025 policy was created to further China’s initiatives to become a hi-tech powerhouse, but the US views it as a threat to its global technological supremacy.
After announcing the latest US moves, US trade representative Robert Lighthizer said that Washington needs to “take strong defensive actions to protect America’s leadership in technology and innovation” and added: “China’s government is aggressively working to undermine America’s hi-tech industries and our economic leadership through unfair trade practices and industrial policies like Made in China 2025.”