China’s Export Reform Strategy in Response to the United States National Defense Authorization Act of 2019
Abstract
The enactment of the United States’ National Defense Authorization Act (NDAA) 2019, particularly Article 889, created significant non-tariff pressure on China’s high-tech export sector by restricting the procurement and use of products from major Chinese technology firms. This situation raised concerns about China’s export vulnerability and the long-term implications of geopolitical trade tensions. This study aims to examine China’s export reform strategies formulated in response to the NDAA, focusing on institutional coordination, financial support mechanisms, fiscal incentives, and the development of high-tech industrial ecosystems. Using a descriptive qualitative method, data were collected through literature review of policy documents, academic publications, and official reports, complemented by interviews with a China political expert and an Indonesian diplomat specializing in Asia–Pacific economic affairs. The findings reveal that China’s policy adjustments were not reactive measures but components of a long-term industrial strategy. The National Development and Reform Commission (NDRC) played a central coordinating role in aligning fiscal, industrial, and diplomatic instruments. Strengthened financing through Sinosure and the Export-Import Bank of China, combined with increased export tax rebates and industrial zone incentives, enabled high-tech firms to diversify markets and sustain competitiveness. The study concludes that China’s export reform reflects a strategic model of state-led resilience, demonstrating how coordinated institutional policies can mitigate external trade shocks and maintain export stability amid intensifying geopolitical competition.
Keywords: China, export support, NDAA 2019, non-tariff protectionism
References
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Gereffi, G., Lim, H. C., & Lee, J. (2021). Trade policies, firm strategies, and adaptive reconfigurations of global value chains. Journal of International Business Policy, 4(4), 506–522. https://doi.org/10.1057/s42214-021-00102-z
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Setiawan, E., Yuniarti, Y., & Tendy, T. (2023). Pelarangan penggunaan produk Huawei di Amerika Serikat berdasarkan National Defense Authorization Act (NDAA) 2019. Interdependence Journal of International Studies, 4(1), 1-13.
Sinotalen. (2022). “China has built over 1.4 million 5G base stations, accounting for over 60% of global total.” Accessed from https://www.sinotalen.com/html/report/22060693-1.htm.
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Xu, C., & Liu, H. (2023). Export tax rebates and enterprise export resilience in China. Journal of International Trade and Economic Development, 32(6), 953–972. https://doi.org/10.1080/09638199.2022.2141827
Zahoor, N., Wu, J., Khan, H., & Khan, Z. (2023). De-globalization, International Trade Protectionism, and the Reconfigurations of Global Value Chains. Management International Review, 63(5), 823–859. https://doi.org/10.1007/s11575-023-00522-4
Zeng, K., & Liang, W. (2022). Introduction: trade wars past and present: causes, dynamics and consequences. In Kai Zeng & Wei Liang (ed.), Research handbook on trade wars (pp. 1–25). Cheltenham, UK: Edward Elgar Publishing.
Zhang, H. (2025). From Shielding to Pushing: Evolving Risk Management Regimes in China’s Infrastructure Export Industrial Policy. Studies in Comparative International Development. https://doi.org/10.1007/s12116-025-09483-1
Zhang, X., Luo, W., & Xiang, D. (2025). Strategic emerging industries and innovation: Evidence from China. International Review of Economics and Finance, 98, 1-16. https://doi.org/10.1016/j.iref.2025.103858
Published
2025-12-02
How to Cite
TREASA, Naoka Zayna; DARMASTUTI, Shanti.
China’s Export Reform Strategy in Response to the United States National Defense Authorization Act of 2019.
Insignia: Journal of International Relations, [S.l.], v. 12, n. 2, p. 133-147, dec. 2025.
ISSN 2597-9868.
Available at: <https://jos.unsoed.ac.id/index.php/insignia/article/view/17091>. Date accessed: 15 dec. 2025.
doi: https://doi.org/10.20884/1.ins.2025.12.2.17091.
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Articles
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