According to the statement, Beijing will remove export control measures against 15 US entitiesand towards the next ones 16 will keep their suspension for another 12 months. The decision aims to ease tensions in economic relations between the world's two largest economies, which have been burdened by a series of mutual trade and technological restrictions in recent years.
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China is taking a step back. “The road to resuming cooperation”
According to a separate statement from the ministry, China will be revoked or suspended for a year also the measures introduced in March and April towards some American companies that were then listed on the so-called unreliable entity list. This list includes companies deemed by Beijing to pose a threat to China's national security or economic interests.
Removing or suspending export controls will make it possible Chinese exporters to re-apply for permits to sell the so-called dual-use goods — that is, those that can be used for both civilian and military purposes. At the same time, domestic enterprises will be able to reopen apply for consent to trade cooperation with American companies that have been subject to restrictions so far.
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A goodwill gesture from Beijing?
The decision of the authorities in Beijing can be read as a gesture of goodwill before the next round of economic talks between China and the United States. Both sides have recently been trying to reduce tensions in the area of technology, semiconductors and investments, which have remained a flashpoint in relations between the superpowers since the 2018-2019 trade war.
Reuters notes that although China's decision does not mean a complete retreat from the policy of controlling the flow of technology, it may be a signal of a pragmatic approach to stabilizing relations with Washington. Beijing hopes that easing restrictions will make it easier for Chinese companies to access American technologies and components, and at the same time improve the investment climate before the planned talks at the ministerial level.
