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China's new sanctions are more bark than bite

Wednesday, March 29, 2023


This was the first time Beijing has used the 'Unreliable Entity List' (UEL) mechanism that it created in 2020 in response to US export controls on Chinese telecoms firms Huawei and ZTE.


  • Taiwan will remain the most sensitive issue and prime source of tension in China-US relations from Beijing's point of view.
  • Emollient statements from MOFCOM will not reassure foreign firms, which will hedge and make contingency plans.
  • China's dominance in the world's rare earths market is one of its few potential weapons, but Beijing will be extremely reluctant to use it.

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