China could arguably strike a serious blow with the use of export controls. For instance, consumer goods giant Henkel has been affected by delayed deliveries of critical minerals, prompting the German firm to declare a force majeure. A dispassionate study of escalating tit-for-tat trade restrictions clearly shows a widespread misuse of national security as a tool of economic statecraft.
While China has called out the US for “overstretching the concept of national security, abusing export controls, and wantonly imposing illegal unilateral sanctions”, it has also done the same in retaliation. When justifying its latest move, a Chinese commerce ministry spokesperson said the export bans are aimed at protecting national security and fulfil non-proliferation and other international obligations..
Technology
Why export controls are the weapon of choice in US-China tech war
With Donald Trump poised to expand tech sanctions in the name of national security, Beijing has signalled it won’t shy away from retaliation.