China to Adopt New Export Control List for Dual-Use Products Starting December 1, 2024
The export control of dual-use products, which include materials and technologies that can be used for both civilian and military purposes, is a fundamental part of China’s strategy to safeguard national security and protect technological interests.
With the introduction of the new export control list, companies exporting dual-use goods will now be required to follow more stringent procedures. The main change is that exporters must obtain a license from China’s Ministry of Commerce (MOFCOM) to export dual-use products included in the “Control List” or subject to “Temporary Control” measures.
Additionally, the regulation grants Chinese authorities the ability to apply extraterritorial control, influencing operations outside China’s borders, yet still concerning activities involving dual-use goods and technologies.
Key Features of the New Regulation
The new regulation, which is divided into six chapters and 50 articles, was developed to respond to changing international security dynamics and rapid technological advancements. Its primary focus is to address the risks associated with the misuse of dual-use products that could pose threats to China’s national security.
The regulation applies to various export and transfer activities, including:
- Export of dual-use products from China to foreign countries.
- Provision of dual-use products by Chinese citizens or organizations to foreign entities or individuals.
- Transportation of dual-use products passing through China to and from other countries.
- Re-exportation of dual-use products by foreign companies.
- Transfer of goods from special customs supervision areas to foreign countries.
The Two Control Categories: Control List and Temporary Control
Dual-use products subject to control are divided into two main categories:
- Control List: This includes products that are closely monitored by Chinese authorities and require an export license for exportation.
- Temporary Control: This applies to goods, technologies, or services not listed on the official list but may be subject to temporary control measures for a period of up to two years, renewable twice for periods of up to two years each.
This distinction allows for greater flexibility in managing risks and regulating new technologies that may not yet be covered by the Control List but could pose future threats to national security.
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