China tightens controls on exports of dual-use items and imposes sanctions on U.S. companies selling arms to Taiwan

China has announced measures to tighten controls on the export of specific dual-use items to the United States, in order to safeguard its national security and interests, according to the Ministry of Commerce (MOFCOM). The measures include a ban on exporting such items to U.S. military users or for military purposes, as well as stricter regulations on exports to the U.S. of items related to gallium, germanium, antimony, super-hard materials and graphite. These materials can be used in semiconductors, infrared technology, optical fiber modules and communication equipment, solar cells and lithium batteries. The term “dual-use items” refers to goods, technologies and services that can be used for both civil and military purposes. The MOFCOM statement said that in recent years, the U.S. has overgeneralized the concept of national security, politicized and weaponized economic, trade and technological issues, abused export control measures, and imposed unwarranted restrictions on the export of certain products to China.

The Chinese government has also announced additional sanctions on U.S. companies that supplied military equipment to Taiwan. Thirteen enterprises and six senior executives were put on the sanctions list, including Teledyne Brown Engineering, BRINC Drones, Rapid Flight, Red Six Solutions, Shield AI, SYNEXXUS, Firestorm Labs, Kratos Unmanned Aerial Systems, HavocAI, Neros Technologies, Cyberlux orp, Domo Tactical Communications, and Group W. China will freeze these companies’ property in China, and prohibit organizations and individuals in China from conducting transactions, cooperation and other activities with them. The six individuals include Barbara Borgonovi, President of Raytheon's Naval Power strategic business unit, Gerard Hueber, Vice President of Raytheon's Naval Power strategic business unit, Charles Woodburn, Group Chief Executive Officer of BAE Systems Land and Armament, Richard D. Crawford, Founder and CEO of Alliant Techsystems Operation, Beth Edler, President of Data Link Solutions, and Blake Resnick, Founder and CEO of BRINC Drones. The individuals will also be denied entry to China, including Hong Kong. The latest U.S. arms sales to Taiwan, announced on November 29, include spare parts for F-16 jets and radars worth USD385 million.