Recently Yahoo News on-line reported the following:
China Sets Precedent by Banning Others From Selling Goods
to US
Bloomberg News
Thu, December 5, 2024 at 10:33 p.m. PST·4 min read
(Bloomberg) -- Beijing has set out to extend its domestic
laws across international borders with a ban on selling some goods to the US
that applies to companies both inside and outside China.
The first use of new export control rules attempts to replicate the extraterritorial reach of US and European sanctions by covering Chinese products or goods with Chinese parts in them. In an announcement this week, China declared it’s banning both the sale of dual-use items to the American military and also the export to the US of materials such as gallium and germanium.
Companies and people overseas will be subject to those restrictions, the Ministry of Commerce said Tuesday. “Any organization or individual from any country or region that violates the above provisions and transfers or provides relevant dual-use items originating in the People’s Republic of China to organizations or individuals in the United States will be held accountable according to law.”
The decision marks the first time China is employing new controls that extend to products with both civilian and military uses. The rules went into effect on Sunday and allow for application similar to the US Export Administration Regulations, according to a report from the law firm Covington & Burling, which noted that there are “few details” on when this extraterritoriality would be invoked.
The precedent-setting move amounts to an escalation with the US weeks before President-elect Donald Trump takes office. China is the top global supplier of dozens of critical minerals, and concerns about its dominance have been mounting in Washington since Beijing placed initial controls on exports of gallium and germanium last year.
“I’m not aware of another such case under the current regulatory regime,” said Cory Combs, an associate director at research firm Trivium China. “For companies, the extraterritorial application means they shouldn’t bank on any loopholes to keep supplies flowing. Simply put, companies using the affected inputs need to find alternative supplies ASAP.”
The new provisions build on earlier language in the 2020 export control legislation, which also said that the law applied to individuals or organizations inside or outside of China, according to Combs.
In recent years the Chinese government has been strengthening its toolbox to push back against US sanctions and trade controls, creating the “Unreliable Entity List” and “Export Control Law” in 2020 and the “Anti-Foreign Sanctions Law” in 2021. It also passed a National Security Law for Hong Kong which claimed jurisdiction over acts committed outside China’s territories.
“The language primarily serves to close the potential loophole for domestic firms to try to reroute exports as opposed to seeking a new avenue to punish third countries,” he said.
What Bloomberg Economics Says...
However, Beijing looks to be starting to use the unreliable
entity list to look at actions taken outside China, with the government
investigating the owner of the Tommy Hilfiger and Calvin Klein clothing brands
on suspicion that it’s boycotting cotton from the Xinjiang region.
If found to be discriminating against Xinjiang-related products, the company could suffer various punishments including being prevented from doing business in China.
In response to US criticism of China’s curbs on exports of gallium and other materials, Ministry of Commerce spokesman He Yadong defended his nation’s actions, saying it was the “US which has abused export control measures” and accusing the US of “economic coercion that seriously harmed international supply chain stability.”
“China’s move is in line with domestic law and is aimed at safeguarding the country’s security and interests,” he said this week.
Exports of gallium and germanium to the US had already dropped off to zero this year, Chinese customs data shows.
Translation
中國開創先例禁止其他國家向美國出售商品
（彭博）—北京已著手將其國內法律擴展越過國際邊界，禁止向美國出售某些商品，該禁令適用於中國境內外的公司。
這首次使用的新出口管制規則, 試圖透過複製美國和歐洲制裁方法, 去涵蓋中國產品或含有中國零件的商品。在本週的聲明中，中國宣布禁止向美國軍方出售可兩用的物品，也禁止向美國出口鎵和鍺等材料。
中國商務部周二表示，海外公司和個人將受到這些限制。 “任何國家或地區的組織或個人違反上述規定，向美國境內的組織或個人轉讓或提供原產於中華人民共和國的相關兩用物項，將依法追究責任。”
這項決定標誌著中國首次採用新的管制措施，並將其範圍擴大到民用和軍用產品。根據 Covington & Burling 律師事務所的一份報告，這些規則於週日生效，並允許類似於美國出口管理條例的應用，該報告指出，關於什麼情况引用這種治外法權的「細節是很少」。
這一開創先例的舉動, 相當於當選總統特朗普就職前幾週把與美國的緊張局勢升級。中國是數十種關鍵礦產的全球最大供應商，自去年北京對鎵和鍺的出口實施初步控制以來，華盛頓對中國主導地位的擔憂不斷加劇。
研究公司 Trivium China 的副總監 Cory Combs 表示：「我不知道在現行監管制度下, 還有沒有其他此類案例」。 「對公司來說，域外適用意味著他們不應該利用任何漏洞來保持供應的流動。簡而言之，使用受影響供應的公司需要盡快找到替代供應」。
Combs表示，新規定以 2020 年出口管制立法中的早期用辭為基礎，該立法亦表示該法律適用於中國境內外的個人或組織。
近年來，中國政府不斷強化反擊美國制裁和貿易管制的工具箱，於2020年制定了“不可靠實體清單”和“出口管制法”，並於2021年制定了“反外國制裁法”。它也通過了香港的《國家安全法》，聲稱對在中國境外進行的行為擁有管治權。
儘管規則中的新表述令人擔憂，但Combs表示，“對於在多大程度上, 北京可能調查或懲罰涉嫌被禁止再出口的第三國，我們尚未有清晰一致的看法。”
他說:「這種措辭主要是為了堵住國內企業試圖改變出口路線的潛在漏洞，而不是尋求懲罰第三國的新途徑」。
— Gerard DiPippo,
Maeva Cousin 和 Nicole
Gorton-Caratelli, 如需完整分析，請點擊。
然而，北京似乎開始使用不可靠實體清單來審視在中國境外進行的行動，政府正在調查 Tommy Hilfiger 和 Calvin Klein 服裝品牌的所有者，懷疑他們抵制來自新疆地區的棉花。
如果被發現歧視涉疆產品，該公司可能會受到各種處罰，包括被禁止在中國開展業務。
針對美國批評中國限制鎵等材料出口，商務部發言人He Yadong為中國的行為辯護，稱是“美國濫用出口管制措施”，並指責美國“實施經濟脅迫，嚴重損害國際供應鏈的穩定性”。
他本週表示:「中方此舉符合國內法，旨在維護國家安全和利益」。
中國海關數據顯示，今年對美國的鎵和鍺出口已降至零。
So, Beijing has set out to extend its domestic
laws across international borders with a ban on selling some goods to the US
that applies to companies both inside and outside China. Apparently, one
solution for foreign companies inside China, such
as Tommy Hilfiger and Calvin
Klein suspected of boycotting cotton from the Xinjiang region, is to abandon
their markets in China.
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