China's New Decision May Challenge the Technology Industry

China, on August 28 on the controlled export list It surprised many industries by announcing new additions to existing technologies. Companies, which were already struggling with the developing trade tensions between the United States and China, did not welcome the new technologies that China added to the list.

This move made by China was initially criticized by Beijing. Ensuring that TikTok has a say in selling the application It was made for. However, advisors to Chinese and foreign companies warn of the potential consequences of this decision by the country. much more He stated that it was.

Companies will receive approval from China to export the technologies added to the list:

The renewed version of the 'partially restricted export' list is also used on ByteDance's TikTok. recommendation algorithms as well as drone and cyber security technologies, voice recognition And handwriting scanning software It contained. Companies that want to export these technologies must apply to China's Ministry of Commerce and Ministry of Science and Technology. get approval It was necessary.

Nicolas Bahmanyar, senior cybersecurity advisor at Beijing-based LEAW law firm, which conducts research and development in China Multinational companies may also be affected by this decision he stated. Nicolas said that research and development centers have the choice of keeping their R&D centers in China and developing technology only for China, or leaving China and using the technologies they develop all over the world. that they may have to choose someone he stated.

The Chinese Ministry of Commerce said in a statement that China has new rules. that it only targets TikTok, announced that it did not target other companies. However, lawyers who examined the changes stated that many companies from different business sectors may be affected by the new decisions. These decisions could change the thinking of companies such as Microsoft MSFT.O, SZ DJI Technology, Zoom Video Communications ZM.O and Tencent Holdings 0700.HK.

Speaking about the new decisions, Raymond Wang, managing partner of Beijing-based law firm Anli Partners, said that these decisions will affect Chinese companies. overseas jobs He said it would affect him. The source added that these companies will be particularly affected by those providing cross-border services.