U.S. imposes new restrictions on exports to China

FILE PHOTO: Chinese and U.S. flags flutter near The Bund, before U.S. trade delegation meet their Chinese counterparts for talks in Shanghai, China July 30, 2019. REUTERS/Aly Song

(Reuters) – The United States on Monday posted rule changes that impose new restrictions on exports to China, including aircraft components and many items related to semiconductors.

The new rules will require licenses for U.S. companies to sell certain items to military entities, even if they are for civilian use, and do away with a civilian exception that allows certain U.S. technology to be exported without a license, if they are for a non-military entity and use.

The rules were posted for public inspection and will be published in the Federal Register on Tuesday.

One rule will affect purchases by entities such as People’s Liberation Army, which is involved in civilian activities such as hospitals, according to experts.

The other rule is expected to affect items like field programmable gate array integrated circuits, eliminating license exceptions for Chinese importers and Chinese nationals.

The administration also posted a third proposed rule change that would force foreign companies shipping certain American goods to China to seek approval not only from their own governments but from the United States as well.

The actions come as relations between the United States and China have deteriorated amid the new coronavirus outbreak.

Reporting by Karen Freifeld; Editing by Chizu Nomiyama and Jonathan Oatis

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