Updated: Jun 8
The United States of America has placed new restriction on exports to the People's Republic of China (PRC), Russian Federation (RU), and Venezuela (VE). The new regulations will require US companies to obtain licenses to sell products to military entities and private organizations that support military entities in these countries. The move will have the greatest impact in the sale of semiconductors, aircraft parts, sensors, integrated microchips, telecommunications equipment, radar, and other technologies.
The action by the Department of Commerce's Bureau of Industry and Security (BIS) is undoubtedly targeted at the PRC, especially given the international outcry at the country's actions in the beginning of the COVID-19 pandemic. It is a significant change in US foreign policy, and if enforced stringently, will act as a de facto export ban since most Chinese companies have ties with the People's Liberation Army (PLA) and Central Government in some form. The regulation is written vague enough that even if a Chinese company is buying an American product for a project unrelated to the PLA, the transaction may be halted simply due to the fact that the company has a relationship with the armed forces.
The regulations come as the United States is developing an increasingly hawkish attitude towards the People's Republic in the wake of the COVID-19 pandemic, aggression in the South China Sea, and human rights abuses. The lone superpower has increasingly sought to target the Chinese tech industry, and thus the Chinese government, by limiting the sale of US technology, banning the import of certain products from China, and investing in 5G infrastructure.
The views expressed are those of the author and do not reflect the official policy or position of the United States Army, Department of Defense, or the United States Government.