Lanka Talents

Speaking on BBC’s Asia Business Report, Mr Capri added: “The other thing I find really interesting is China has placed AI and algorithms under these export controls.

“This was prompted by the US ban on TikTok. The Chinese government does not want to share this AI.”

Mr Capri believes the ongoing trade war between the US and China will follow the “same trajectory” under Joe Biden. “We’re in a cold war with China – it’s a tech cold war,” he said.

The Export Control Law establishes several categories of “controlled items”, which include nuclear, military items and “dual use” items that can be used for both civilian and military purposes.

The law also covers items that are considered vital to the protection of China’s national security.

Exporters must apply for a license in order to export any item listed on a control list or subject to temporary controls.

Data associated with the controlled items is also covered by the law.

The law imposes penalties of ten times the value of the offending transaction up to $760,000 (£569,000).

It also allows for the punishment of overseas organisations or individuals, suggesting Beijing might attempt to use it to restrict the sale of sensitive technology globally.

Prices for rare earth minerals have increased in anticipation that the law could affect their export.

China is the world’s biggest supplier of rare earth minerals, which are used in products ranging from consumer electronics – like smart phones – to wind turbines.

“China has a massive overwhelming advantage when it comes to rare earths,” said Mr Capri. “Essentially, over the past 30 years, the ability to extract rare earths lies with China. It’s going to be hugely important when it comes to jet fighters, automotive, etc.”

By BBC Business News.