US Interagency Team Should Assess Possible Chinese Export Controls, Ex-US Official Says
When imposing trade restrictions on China, the U.S. should do more analysis to better understand how Beijing might retaliate with export controls, a former State Department official said April 14.
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Philip Luck, who is now director of the economics program at the Center for Strategic and International Studies, said in an online commentary that the Commerce Department should lead an interagency assessment of how China might cut off shipments of such items as critical minerals and medical supplies in response to U.S. measures.
Luck also recommended that the State, Commerce and Energy departments establish a formal dialogue with China on export controls to prevent unintended escalations and stabilize economic relations. The U.S. also should monitor legal and regulatory changes in China that could indicate how Beijing might respond to Washington’s actions, Luck wrote.
China’s export control regime has evolved in recent years in response to U.S. measures, including the addition of Chinese firms to Commerce’s Entity List, the enforcement of the foreign direct product rule, and the restriction of semiconductor sales to China, Luck said. For example, a day after the Bureau of Industry and Security published a new set of semiconductor-related export controls aimed at China, Beijing announced a ban on certain key critical minerals and other dual-use items being shipped to the U.S. for military uses (see 2412030022).