China Tightens Tech Rules While Trading Off Tariffs

China has quietly broadened its economic toolkit during a temporary lull in the U.S. trade dispute, setting up new limits on technology and supply chains ahead of a summit next month.

• Post-Busan Agreement
  After leaders Xi Jinping and Donald Trump agreed in Busan to ease tensions, Beijing moved swiftly to tighten controls on advanced equipment that could benefit the U.S., including solar panel parts and high‑end magnets.

• State Council Regulations
  The State Council rolled out a series of regulations granting authorities the power to counter foreign actions deemed illegal or unfair, such as secondary sanctions and export restrictions that spill over beyond a country’s borders.

• February Sanctions on Japanese Firms
  China barred 20 Japanese firms supplying military‑grade materials from exporting dual‑use goods to Japan, citing security concerns.

• Cybersecurity Tool Restrictions
  Earlier this year, the government told domestic companies to stop using cybersecurity tools from U.S. and Israeli makers, arguing they could pose national risks.

• Chipmaker Equipment Mandate
  The country also pushed chipmakers to use at least half domestic equipment for new plants, a step toward self‑reliance in semiconductors.

• Expanded Export Limits
  Export limits now cover key battery components, rare earth elements, and even the technology needed to refine them. Foreign firms that rely on Chinese inputs face stricter scrutiny.

These moves illustrate China’s strategy of using trade agreements to secure economic advantages while tightening controls on technology that could shift power balances.