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Officials from the Ministry of Justice and the Ministry of Commerce answered reporters’ questions on the -Regulations of the People’s Republic of China on the Export Control of Dual-Use Items-

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Officials from the Ministry of Justice and the Ministry of Commerce answered reporters’ questions on the -Regulations of the People’s Republic of China on the Export Control of Dual-Use Items-

On September 30, 2024, Premier Li Qiang signed State Council Order No. 792, announcing the Regulations on the Export Control of Dual-use Items of the People’s Republic of China (hereafter referred to as the “Regulations”), which will take effect on December 1, 2024. Recently, officials from the Ministry of Justice and the Ministry of Commerce addressed reporters’ questions regarding the Regulations.

**Q: Could you briefly explain the background for the establishment of these Regulations?**
A: The Party Central Committee and the State Council place great importance on the export control of dual-use items. These items can be used for both civilian purposes and military purposes, or can enhance military capabilities. Export control of such goods, technologies, and services is a common practice internationally. Since the 1990s, China has developed various administrative regulations and rules based on the different categories of dual-use items, actively contributing to the legal implementation of export controls while safeguarding national security and international non-proliferation obligations. With the promulgation of the Export Control Law in 2020 establishing a unified export control system, it became necessary to summarize practical experiences, consolidate existing separate regulations, and formulate a unified set of Regulations to clarify the leadership of the Party in export control, better implement the overall national security view, harmonize development with security, and create a predictable trade environment. This aims for a constructive interaction between high-quality growth and robust safety measures, while the improved export control measures provide institutional support for safeguarding national security and interests.

To implement this directive from the Party and government, the Ministry of Justice collaborated with the Ministry of Commerce and other departments to draft the Regulations. The Regulations were reviewed and approved at the 41st executive meeting of the State Council on September 18, 2024, and will come into force on December 1, 2024.

**Q: What is the overall approach taken in drafting the Regulations?**
A: The Regulations are guided by Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era and the overall national security concept. Key aspects include: first, balancing development and security to ensure effective control over dual-use item exports while creating a stable, transparent, and predictable regulatory environment that promotes compliant trade. Second, following the Export Control Law and integrating existing administrative regulations to build a unified and efficient dual-use item export control system. Third, advancing domestic and international legal frameworks that harmonize with global standards, addressing current conflicts in dual-use item export control while fulfilling international non-proliferation obligations. Fourth, adapting to new conditions, the Regulations specify protective measures based on the Export Control Law to enhance regulatory efficacy.

**Q: How were public opinions sought during the drafting process of the Regulations?**
A: The drafting process adhered to principles of scientific, democratic, and lawful legislation, widely gathering opinions from various sectors. The Ministry of Commerce utilized written inquiries, local visits, enterprise interviews, and expert roundtables to gather insights from relevant authorities, businesses, associations, and academic experts. The draft of the Regulations was publicly available for feedback, yielding nearly 600 comments from businesses, associations, foreign governments, and diplomatic agencies, each of which was thoroughly reviewed and considered. Afterward, the Ministry of Justice conducted subsequent rounds of consultations with over 100 entities, including government bodies and businesses, incorporating a broad range of suggestions into the final draft presented to the State Council. Thus, the Regulations are a product of extensive collaboration and collective insight.

**Q: What fundamental principles and requirements govern dual-use item export control?**
A: The fundamental principles serve as a vital guideline for effective control of dual-use item exports. The Regulations clearly state that they adhere to the leadership of the Communist Party of China, uphold the overall national security view, maintain international peace, and coordinate high-quality development with effective security measures. Compliance with laws and administrative regulations during the export and related activities of dual-use items is mandatory, ensuring that national security and interests are not compromised.

**Q: Can you explain the management system for dual-use item export control as outlined in the Regulations?**
A: The Regulations maintain stability in the existing management system for dual-use item export control, clarifying the roles of relevant institutions and departments as per the Export Control Law. The national export control coordination mechanism is tasked with organizing and guiding dual-use item export control efforts and coordinating major issues. The State Council’s department responsible for commerce will oversee these controls, while other relevant departments will manage specific responsibilities. Local government commerce departments may conduct related tasks under the delegation of the central department. Customs will be responsible for inspections at ports as stipulated by law.

**Q: What improvements have been made to the management measures regarding export control lists and temporary controls?**
A: Under the unified export control system defined by the Export Control Law, the Regulations elaborate on the processes for establishing and adjusting export control lists. The commerce department is required to publish these lists timely and seek input from businesses and associations during the creation and adjustment phases, possibly conducting industry surveys as necessary. The Regulations also detail procedural requirements for temporary controls, including the frequency, duration, and evaluation of such measures. The Ministry of Commerce is currently developing a standardized dual-use item export control list, which will be implemented alongside the Regulations and continuously adjusted to better align with development and security needs.

**Q: The Regulations include measures to enhance control efficiency; however, will this impact normal export trade, technological exchanges, and economic cooperation?**
A: Dual-use items have both civilian and military applications; improper use could pose threats to international security, leading major countries and regions to enforce strict domestic regulations. The Regulations advocate for a comprehensive security approach while addressing the need for compliance with non-proliferation obligations. They aim to establish an effective and unified dual-use item control system that fosters a stable and predictable environment for compliant trade. It is important to emphasize that export control does not equate to a total export ban. The measures outlined in the Regulations align with international standards, safeguarding trade security and ensuring normal international technological exchanges and economic cooperation proceed without hindrance.

**Q: What facilitation measures for dual-use item exports are included in the Regulations?**
A: The Regulations provide several facilitation measures: first, they eliminate the existing requirement for businesses to register as exporters of dual-use items prior to applying for export licenses. Second, the Regulations enhance transparency and standardization in export control policy development. Third, they refine general licensing procedures, specifying applicable conditions and processes. Fourth, they conform to international standards by allowing exporters certain conveniences, such as using “registration information” to obtain export documentation for specific scenarios like repairs or exhibitions. Lastly, the Regulations call on supervisory departments to strengthen guidance and service, keeping industry export control guidelines updated and promptly addressing inquiries related to controlled items.

**Q: What provisions does the Regulations make regarding the management of end users and end uses?**
A: Managing end users and end uses is critical to dual-use item export control. The Regulations strengthen management throughout the export process by requiring exporters to submit documentation verifying both the end user and the intended use when applying for licenses, prohibiting any unauthorized changes. If there are changes in the end user or the end use, the exporter must cease exports immediately, notify the commerce department, and comply with any follow-up inspections. Additionally, drawing from international practices, a watchlist system has been established, whereby those failing to cooperate can be listed, precluding them from receiving licensing benefits.

**Q: The Export Control Law established a control list system. Under what circumstances might entities be added to the dual-use item control list, and what measures can be taken against them?**
A: Effective control measures are crucial for successful export regulation. The Regulations build upon the Export Control Law, stating that entities may be added to the control list if importers or end users violate user management requirements or pose risks to national security. The Ministry of Commerce may also add entities involved in the development of weapons of mass destruction to the control list. For those listed, the Regulations allow for measures such as prohibiting or limiting trade engagements pertaining to dual-use items.

**Q: How does the Regulations detail supervision and inspection processes?**
A: The Regulations advance existing supervision and inspection systems by outlining that a cooperative enforcement structure will be established to monitor compliance and proactively address violations. The Ministry of Commerce will carry out oversight and enforcement as mandated by law, with specific procedures to ensure that enforcement personnel include at least two members who must display identification. Additional measures for investigations and reporting obligations on exporters are also covered. Furthermore, Chinese citizens and entities cannot accept foreign government invitations related to export regulations without prior approval.

**Q: What regulations govern the transshipment, transit, and re-export of dual-use items?**
A: To prevent the proliferation of weapons of mass destruction and foster global security, the international community generally includes dual-use items’ transshipment and transit within export controls as suggested by UN resolutions and international treaties. The Regulations classify these activities as under export control, requiring adherence to relevant laws. However, given unique aspects of these export forms, the specific application process will be delineated by the Ministry of Commerce in collaboration with Customs.

**Q: How will the implementation of the Regulations be promoted?**
A: Following the Regulations’ release, the Ministry of Commerce will prioritize dual-use item export controls under the guidance of the Party and State Council. They will emphasize learning and awareness-raising initiatives, ensuring local authorities and related departments understand and enforce the Regulations effectively. Collaborative efforts will be enhanced with various departments to streamline policy enactment, item listing, licensing management, and law enforcement. Additionally, necessary adjustments to existing regulations and policies will be pursued, alongside the modernization of electronic governance systems to ensure a smooth implementation of the Regulations and elevate the overall regulatory capacity.

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