China is set to pass a new law that would restrict sensitive exports vital to national security, expanding its toolkit of policy options as competition grows with the U.S. over access to technologies that will drive the modern economy.
A report carried by official Xinhua News Agency said the draft law stipulates that China could take reciprocal measures against a certain country or region that has "abused export control measures and damaged China's national security and interests".
The new law allows Beijing to retaliate against the US, which in recent months has attempted to block Chinese technology firms such as telecommunications gear supplier Huawei, Bytedance's TikTok app and Tencent's messaging app WeChat on grounds of posing a national security threat, including the data they may possess from operating in the country.
While its existing control list is much narrower than the one used by the USA, the country's commerce ministry made an amendment in August that included technology such as algorithms and drones. The list could be further expanded to include even more products and technologies.
China has passed a law to strengthen its export controls on products related to national security.
Companies and individuals who endanger national security by breaching the new export control law, including those outside of China, could face criminal charges.
Whether Beijing will allow the export of valuable Chinese technology is one of the biggest uncertainties hovering over the partial sale of TikTok to Oracle and American investors.
In August, China's commerce ministry issued a revised list of technologies that are banned or restricted for export.