The Trump administration is tightening rules to prevent China from obtaining advanced U.S. technology for commercial purposes and then diverting it to military use, several sources told Reuters.
They are also a sign of growing nervousness within the U.S. government over China's"civil-military" fusion promoted by President Xi Jinping, which aims to build up its military might and super-charged technological development in tandem. Industry fears the new rules, which include withdrawing license exceptions, could drive Chinese consumers into the arms of foreign rivals.
"It could be significant for certain companies," Jacobson said."In terms of whether that would lead to denials, who knows? But it would be an additional hurdle to jump through for a U.S. company to sell to commercial end users in China." A final change would force foreign companies shipping certain American goods to China to seek approval not only from their own governments but from the U.S. government as well.
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