Digital extra-territorial reach exceeds US grasp

If this were just a purely American impact, then it would be of little concern. One aspect of the U.S.-China Business Council (USCBC) concerns relates to the use of U.S. items in goods manufactured overseas which are then subsequently exported to China. They are concerned that foreign companies currently buying U.S. parts will source these components from elsewhere, so they do not have to seek an export license from the U.S. Department of Commerce.

The USCBC submission identifies a third component of concern and this is the term "re-export." At face value this means, for instance, selling U.S. weapons to a company based in a neutral country and then re-exporting these items to China.

A more detailed reading by the USCBC suggests this also applies to components and software that are imported from the U.S. and used in the creation of a new product that is subsequently exported to China where it may be labelled as dual use because it "supports or contributes" to the operation of military items.