Beijing bans firms in China and abroad from selling some goods to US

First use of new export control rules attempts to replicate reach of US, European sanctions

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BEIJING - Beijing has set out to extend its domestic laws across international borders with a ban on selling some goods to the US that applies to companies both inside and outside China.

The first use of new export control rules attempts to replicate the extraterritorial reach of US and European sanctions by covering Chinese products or goods with Chinese parts in them.

In an announcement this week, China declared it was banning both the sale of dual-use items to the American military and the export to the US of materials such as gallium and germanium.

Companies and people overseas will be subject to those restrictions, the Ministry of Commerce said on Dec 3. "Any organisation or individual from any country or region that violates the above provisions and transfers or provides relevant dual-use items originating in the People's Republic of China to organisations or individuals in the United States will be held accountable according to law."

The decision marks the first time China is employing new controls that extend to products with both civilian and military uses.

The rules went into effect on Dec 1 and allow for application similar to the US Export Administration Regulations, according to a report from the law firm Covington & Burling, which noted that there are "few details" on when this extraterritoriality would be invoked.