In a significant geopolitical shift, China is now employing tactics long associated with the United States, asserting greater control over global technology supply chains. New regulations issued by Beijing mandate that foreign companies must seek government authorization for any exports incorporating Chinese rare earth elements or leveraging Chinese technological innovations. This directive effectively places China in a position to scrutinize and potentially block a vast array of tech products, from everyday consumer electronics to specialized components.
This strategic maneuver is widely seen as a direct response to and emulation of US export control policies, particularly the ‘foreign direct product’ rule that previously limited China’s access to critical technologies. Beijing’s adoption of this playbook suggests a deliberate strategy to counter perceived economic pressures and enhance its own leverage in international trade negotiations.
The groundwork for this policy shift was laid years ago. The trade dispute that began in 2018 spurred China to cultivate its own set of countermeasures. In 2020, China unveiled its ‘Unreliable Entity List,’ a counterpart to US blacklisting initiatives. This was further bolstered in 2021 by an anti-foreign sanctions law, providing legal authority for asset freezes and visa restrictions against entities deemed detrimental to Chinese national interests. Media commentary at the time highlighted this as a direct ‘hit back with the enemy’s methods’ approach.
The recent escalation in trade tensions, triggered by renewed tariffs and retaliatory measures on both sides, has pushed this dynamic to the forefront. China’s tightening of controls on essential materials and its expansion of blacklists demonstrate a sophisticated understanding and application of trade enforcement tools. This development signals that Beijing is now a formidable player in global trade politics, capable of matching and indeed, adapting, Washington’s assertive strategies. The era of unilateral dominance in trade tactics appears to be over, replaced by a more complex and reciprocal playing field.