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The new rules will require U.S. companies to obtain licenses when selling certain products to military entities, even if the products are civilian; in addition, the new rules will eliminate the exceptions that allow certain U.S. technologies to be exported to and used for non military purposes without a license.
The rules are being published and will be published in the Federal Register on Tuesday. The new rules could hurt the semiconductor industry and the sale of civil aviation equipment to China if the United States determines that the products will be used for military purposes.
These adjustments include the requirement for more product exports to be licensed, and the expansion of the scope of application of the provisions for Russia and Venezuela, but the most affected will be trade with China.
"It's important to consider the consequences of doing business with countries that have a history of converting goods purchased from U.S. companies to military use," commerce secretary Ross said
Kevin wolf, a trade lawyer in Washington, said the rules are a response to China's policy of civil military integration.
He said the regulatory definition of military use and users was very broad, not limited to procurement by entities such as the people's Liberation Army.
For example, wolf said that if a Chinese auto company repairs a military vehicle, it is now a military end-user, even if the products it exports are used for other parts of its business.


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