The revised catalogue of Chinese technologies whose exports are banned or restricted doesn’t target any specific companies, a spokesman for the Ministry of Commerce (MOFCOM) said on Thursday, when asked whether the revision aims to delay the sale of TikTok.
While the forced sale of the Chinese video-sharing platform in the US is by no means the target of the revision, the new list would have an inevitable impact on the talks as part of the nation’s efforts to avoid the loss of indigenous technology amid a US-launched technology war, experts said.
The announcement of the revised list is in line with scientific and technological development and the push for international technology exchange and cooperation, MOFCOM spokesman Gao Feng told an online briefing in Beijing.
China added 23 of its best technologies including drone technology, ultra-high voltage transmission, clean coal power generation, and quantum encryption to the list of restricted exports, according to a Friday circular jointly released by MOFCOM and the Ministry of Science and Technology (MOST).
The existing list came into effect on November 1, 2008. It was not until July 2018 when the MOFCOM unveiled draft revisions.
The revision is an imperative to safeguard the security of China’s homegrown core technologies, Cui Hongjian, director of the Department of European Studies at the China Institute of International Studies, told the Global Times on Thursday.
The US move toward technology decoupling is part of its clampdown on Chinese businesses through economic and legal means, which risks the intangible loss of Chinese technologies, Cui said.
“We shouldn’t be blinded by the US claim about technology loss due to technology transfers,” he noted, adding that China’s rise in the technology arena has made the nation more aware of the need to protect indigenous technologies.
China’s technology exports stood at $20 billion in 2013, less than half that of technology imports. But exports hit $32.1 billion last year, almost the same as imports, according to MOFCOM data.
The new list wouldn’t have much of an impact on China’s technology trade, Cui said, although the revision could have repercussions on investment.
As Chinese businesses continue to explore opportunities abroad, it is not only the money they bring – their appeal for local markets also includes the transfer of their technologies, which would propel local tech advances, he commented.
If relevant firms make an overseas transfer of technologies on the list during trade, investment or outbound economic and technology cooperation, they should consult provincial commercial authorities in a timely manner and follow the new rules, Gao said.
The spokesman didn’t disclose whether the sale of TikTok’s US operations requires the approval of the Chinese government, or whether TikTok parent ByteDance has filed an application with the MOFCOM and the MOST for the sale.
The revised list, however, would inevitably weigh on the deal, observers said.
There is speculation that the US has plans to access TikTok’s core algorithms, which are among the restricted export items, and this will inevitably affect the sale of its US unit, according to Cui.
China classifies tech exports as free, restricted and prohibited. Free technology exports are subject to contractual registration, while the export of restricted technologies requires a license.
ByteDance said on Sunday that it will strictly follow the revised rules in “handling operations related to export of technologies.”
The revamped list reinforced the argument of Liu Dingding, an independent tech analyst in Beijing, who said the TikTok is unlikely to exit the US market.
The deal will have to be approved by both the Chinese and US governments, Liu told the Global Times on Thursday.
With US firms buying stakes in its local operations, TikTok is expected to continue serving US consumers and creating jobs locally as part of its globalized push, he commented.
Photo taken on Aug. 21, 2020 shows a logo of the video-sharing social networking company TikTok’s Los Angeles Office in Culver City, Los Angeles County, the United States. TikTok confirmed Saturday that it will file a lawsuit against the Trump administration over an executive order banning any U.S. transactions with its parent company ByteDance. (Xinhua)
