China’s Use of Export Restrictions and WTO Law: Heading toward “Weaponization” of Exports?

Bogdanova, Iryna; Wang, Anqi (2023). China’s Use of Export Restrictions and WTO Law: Heading toward “Weaponization” of Exports? In: Gao, Henry; Raess, Damian; Zeng, Ka (eds.) China and the WTO. A Twenty-Year Assessment (pp. 160-180). Cambridge University Press 10.1017/9781009291804.011

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The US-China trade war and looming ‘technological de-coupling’ instigated major revisions of Chinese laws and regulations. These recent amendments represent a major shift in the role assigned to export restrictions. In particular, China is more willing than before to use export restrictions as a geopolitical tool. To test the veracity of this assertion, this chapter analyses China’s use of export restrictions in the period from 2001 to 2021. It suggests that three distinct phases can be discerned: (i) the elimination of export restrictions before and after joining the WTO; (ii) the selective use of export restrictions for domestic policy reasons; and (iii) a shift toward strategic use of export restrictions as an instrument of geopolitical competition. Several implications flow from this new development: it endangers existing supply chains, may bifurcate the global economy by sapping its growth potential and contributes to the erosion of the multilateral trading system.

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