Explainer | In case of trade emergency, break glass: inside China’s policy toolbox
Beijing, in response to actions it views as violations of the rights of its firms, has a number of measures it can employ - here are six
Beijing has deployed a wide variety of measures to protect its domestic industries as China’s economy, the world’s second largest, grapples with a number of external tensions.
In addition to traditional tools accepted in international law such as anti-dumping or countervailing investigations, the country’s Ministry of Commerce has adopted other methods to respond to what Beijing views as encroachment by trade partners, particularly in the months since US President Donald Trump began his second term by levying enormous import duties.
Six of those measures are outlined below.
Unreliable Entity List
A mechanism initially announced in 2019 to target foreign entities – companies, organisations or individuals – deemed to endanger China’s sovereignty, security or development interests, or seriously harm Chinese firms’ rights. Those listed may face restrictions including bans on trade and investment, and their senior executives may be prevented from entering the country.
In four earlier updates this year, it placed a total of 50 American entities on the list, including 47 firms and two laboratories. However, 17 that had been added in April were granted 90-day reprieves or removed from the list entirely in August following high-level trade talks in Stockholm in late July.
Export controls on dual-use items
China issued new regulations last year on exports of “dual-use” goods – items with potential military applications along with their civilian functions – requiring shipment approvals related to licensing, control lists, temporary curbs or total bans.