China said on Thursday it is reviewing the effect of a U.S. proposal to tighten controls on technology exports and will act to protect the legitimate interests of Chinese companies.
The move under review would expand scrutiny across 14 high-tech areas, including artificial intelligence and microprocessor technology. Analysts have said the proposal is aimed squarely at China.
A 30-day public comment period is already under way and is set to end on Dec. 19, according to a Federal Register notice published by the U.S. government on Monday.
The proposal comes against the backdrop of a widening trade war in 2018. U.S. President Donald Trump had already imposed tariffs on $250 billion of Chinese imports, while China responded with tariffs on U.S. goods.
Washington has pressed Beijing to open its market further, strengthen intellectual property protections for U.S. firms, cut industrial subsidies and reduce a $375 billion trade gap.
On Tuesday, the Trump administration said China had not changed what it called “unfair” practices at the center of the dispute, adding pressure ahead of a planned meeting later that month between Trump and Chinese President Xi Jinping.
The latest U.S. findings came in an update to the Trade Representative’s Section 301 investigation into China’s intellectual property and technology transfer policies. That inquiry led to tariffs on $50 billion worth of Chinese goods, which later rose to $250 billion.
Gao Feng, spokesman for China’s commerce ministry, said at a weekly briefing that Beijing was “deeply concerned” about the updated Section 301 report. He added that China would not accept “groundless” accusations.
