"If you carefully study the terms, the list isn't designed to be a 'clean-cut' ban, but a case-by-case restriction," he said.

"It's essentially a defensive control, meaning the government would only step in when major national security issues and corporates' lawful rights are at stake."

Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said that it has been a common international practice to implement negative lists for technology exports, and adjustments have become necessary thanks to the development of new technologies since the catalog was last revised in 2008.

"China is not in favor of the so-called decoupling. … Some forefront technologies might affect national security and public welfare, and need to be included in catalog management," he told Xinhua News Agency in an article published on Saturday.

He suggested companies like ByteDance study the new list and "seriously and cautiously" consider whether they should cease sales negotiations.