The United States on Monday altered a few changes in rules that impose new restrictions on exports to China amid the coronavirus crisis. The new rules impose restrictions that would now require licenses for US companies to export those products to China.

The change in rules comes at a time when relationship between the United States and China has deteriorated amid the coronavirus outbreak. The United States has been frequently pointing fingers at China for failing to handle the coronavirus outbreak that has now taken the shape of a pandemic which is not only costing millions of lives but also hurting the global economy.

License must even if exports are for civilian use

US China flag
US China flags Reuters

The United States on Monday implemented rule changes that will now impose new restrictions on exports to China. These include restrictions on export of aircraft components and certain things related semiconductors. With the implementation of the new rules, US companies will have to have licenses to sell certain products to military entities even if they are for civilian use.

Moreover, civilian exceptions that so long allowed certain US technology to be exported without a license, if they were for non-military use, will be done away with. The new rules have already been posted for public inspection and will be published in the Federal Register on Tuesday.

Will there be another US-China face off?

Trade
Trade (Representational picture) Pixabay

This isn't the only change that will be implemented. A host of other rules too have been altered of which one is likely to impact products like field programmable gate array integrated circuits. There were so long license exceptions for Chinese importers and Chinese nationals of these products, which will now be done away with. Also, experts believe that many entities involved in civilian activities like hospitals and others too will be impacted owing to the new rules.

This may once again aggravate the trade war between the United States and China. The two counties had been involved in a major trade dispute involving exports worth millions of dollars. The trade tensions got slightly ease after the two countries signed the phase one trade deal earlier this year.

However, tensions once again seem to be building between the two countries following the coronavirus outbreak. United States has been pointing fingers at China for failing to control the Covid-19 outbreak in Wuhan, which now has taken the shape of a pandemic, which has been severely affecting the global economy. A new round of trade tensions now will only worsen the situation.