'The controls are the latest from Beijing to flex China’s global dominance of supply chains, especially for cutting-edge industries and defense systems. The new rules signal China is tightening its stranglehold on key industrial bases and technologies as the U.S. and other Western countries aim to build up domestic manufacturing and reduce reliance on China.

“They want to maintain as much of that strategic position as possible,” said Julian Evans-Pritchard, head of China economics at Capital Economics.

In explaining its new rules, China said the export controls target dual-use items—those with both military and civilian applications—to protect the country’s national security.'