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On [date], Premier Li Qiang of the State Council signed State Council Order No. [number], promulgating the "Regulations on the Export Control of Dual-Use Items of the People's Republic of China" (hereinafter referred to as the "Regulations"), which will come into effect on [date]. Recently, officials from the Ministry of Justice and the Ministry of Commerce answered questions from reporters regarding the "Regulations."

Question: Please briefly introduce the background of the introduction of the Regulations.

Answer:

党中央、国务院高度重视两用物项出口管制工作。两用物项是既可用于民用目的，也可用于军事目的或者有助于提升军事潜力的货物、技术和服务。对两用货物、技术和服务等进行出口管制是国际通行做法。上世纪年代以来，我国按照两用物项不同类别先后制定了多部行政法规、规章，对依法实施两用物项出口管制，维护国家安全和利益、履行防扩散等国际义务发挥了积极作用。年，出口管制法公布施行，规定实行统一的出口管制制度，因此，当前有必要在出口管制法框架下，总结实践经验，整合现行分散的制度规定，制定一部统一的两用物项出口管制条例，进一步明确坚持党对两用物项出口管制工作的领导；更好贯彻落实总体国家安全观，统筹发展和安全，既着力提升两用物项出口管制效能，又营造可预期的贸易制度环境，实现高质量发展与高水平安全的良性互动；通过完善出口管制措施，为维护国家安全和利益提供制度支撑和法治保障。

In order to implement the decisions and deployments of the Party Central Committee and the State Council, the Ministry of Justice, in conjunction with the Ministry of Commerce and other relevant departments, has drafted the "Regulations on the Export Control of Dual-Use Items of the People's Republic of China (Draft)", which was reviewed and approved by the 100th Executive Meeting of the State Council on [specific date], and will come into effect on [specific date].

Question: What is the overall approach to formulating the Regulations?

Answer:

The Regulations are guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the overall national security concept, and mainly follow the following approaches: First, balance development and security, ensuring effective control over the export of dual-use items to safeguard national security and interests, while creating a stable, transparent, and predictable institutional environment to promote compliant trade in dual-use items, achieving a virtuous interaction between high-quality development and high-level security. Second, follow the Export Control Law and incorporate existing administrative regulations and rules to build a unified and efficient export control system for dual-use items. Third, advance both domestic and foreign-related rule of law, based on national conditions, to establish an export control system that is compatible with internationally accepted rules, addressing the main challenges faced by our current export control of dual-use items and meeting the needs of fulfilling international obligations such as non-proliferation. Fourth, in light of new circumstances and requirements, refine and implement specific measures for the export control of dual-use items in accordance with laws such as the Export Control Law, enhancing regulatory efficiency.

Question: How was the public consultation conducted during the formulation of the Regulations?

Answer:

During the formulation of the Regulations, the drafting department strictly adhered to the requirements of scientific legislation, democratic legislation, and legislation in accordance with the law, and followed procedures to widely solicit opinions from all parties. In the research and drafting stage, the Ministry of Commerce conducted in-depth investigations by soliciting written opinions, conducting field research in local areas, visiting enterprises, and holding expert symposiums to understand the views of relevant departments, enterprises, chambers of commerce, associations, academic experts, and lawyers. The draft Regulations on the Export Control of Dual-Use Items (for public comment) was also made public to solicit opinions from society. The nearly one hundred opinions submitted by relevant enterprises, chambers of commerce, associations, foreign governments, and institutions in China were carefully studied one by one, and reasonable opinions were fully incorporated. After receiving the draft for review, the Ministry of Justice solicited opinions from central government units, local governments, and enterprises in four rounds, organized expert evaluations, and listened to the opinions of relevant chambers of commerce and associations. On this basis, the department carefully studied the opinions and suggestions from all parties, absorbed and adopted them as much as possible, and repeatedly revised and improved the draft, which was then submitted to the State Council's executive meeting for deliberation and subsequently promulgated and implemented. It can be said that the Regulations widely incorporated various opinions and suggestions, embodying the collective wisdom of all parties.

Question: What are the basic principles and requirements that dual-use items export control work follows?

Answer:

The basic principles and requirements for dual-use items export control are the guidelines for effective dual-use items export control work, which are of great importance. In this regard, the Regulations clearly stipulate in the General Provisions: Dual-use items export control work adheres to the leadership of the Communist Party of China, upholds the overall national security concept, safeguards international peace, coordinates high-quality development with high-level security, improves the management and services of dual-use items export control, and enhances the governance capabilities in this area. The export and related activities of dual-use items shall comply with laws, administrative regulations, and national regulations, and must not harm national security and interests.

Question: Please introduce the provisions of the Regulations regarding the dual-use items export control management system.

Answer:

The Regulations maintain the stability of the current dual-use items export control management system. According to the provisions of the Export Control Law, the responsibilities of relevant agencies and departments are clarified: First, the National Export Control Coordination Mechanism is responsible for organizing and guiding the export control of dual-use items, and coordinating major matters concerning the export control of dual-use items. Second, the Ministry of Commerce of the State Council is responsible for the export control of dual-use items, and other relevant departments of the State are responsible for the export control of dual-use items according to their respective duties. Third, the commerce departments of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government may, upon the entrustment of the Ministry of Commerce of the State Council, carry out relevant work on the export control of dual-use items. Fourth, the customs authorities are responsible for the inspection and release at the ports in accordance with the law.

Question: What improvements have been made to the dual-use items export control list and the implementation of temporary control measures in the Regulations?

Answer:

The Export Control Law stipulates that the state implements a unified export control system, managing through the formulation of control lists, catalogs, or directories (collectively referred to as control lists) and the implementation of export licenses. Based on the Export Control Law, the Regulations elaborate on the procedures for the formulation and adjustment of dual-use items export control lists, requiring the Ministry of Commerce of the State Council to promptly publish the lists and, during the formulation and adjustment process, to solicit opinions from relevant enterprises, chambers of commerce, associations, and other parties in an appropriate manner, and to conduct industrial investigations and assessments when necessary. Additionally, the Regulations detail the procedural requirements for the implementation of temporary controls, specifying the frequency and duration of such controls, as well as the requirements for evaluating the implementation of temporary controls. Currently, the Ministry of Commerce is formulating a unified dual-use items export control list, which will be implemented in tandem with the Regulations and will be subject to dynamic adjustments in the future, better serving development and security.

Question: The Regulations have stipulated many measures for the export control of dual-use items, which have indeed improved the effectiveness of control, but will they affect normal export trade, scientific and technological exchanges, and economic and trade cooperation?

Answer:

Dual-use items can be used for civilian purposes as well as for military purposes or to enhance military potential, and their misuse may pose a threat to international security. Major countries and regions around the world strictly control the export of such goods, technologies, and services through domestic legislation.

The Regulations are formulated to implement the overall national security concept, adhering to the principle of balancing development and security, addressing the primary contradictions faced by our dual-use items export control and fulfilling international obligations such as non-proliferation, based on national conditions, and improving an export control system that is coordinated with internationally accepted rules. While establishing a unified and efficient dual-use items export control system to effectively regulate exports of dual-use items, it aims to create a stable, transparent, and predictable institutional environment, promoting the development of compliant trade in dual-use items.

It is important to emphasize that export controls are not export bans. The dual-use items export control measures stipulated in the Regulations comply with international norms, contribute to ensuring trade security, promote the normal trade of dual-use items, and safeguard the implementation of the strategy to build a strong trading nation. These measures will not create obstacles for normal international scientific and technological exchanges, economic and trade cooperation, or the smooth operation of the global industrial and supply chains.

Question: What facilitation measures for the export of dual-use items are stipulated in the Regulations?

Answer:

The regulations primarily address three aspects: Firstly, in terms of business qualifications, the current administrative regulations and rules regarding the registration system for dual-use item exporters have been abolished. After the implementation of the regulations, exporters no longer need to apply for dual-use item exporter registration in advance and can directly apply for export permits. Secondly, in terms of the transparency and standardization of export control policies, the considerations and procedures for formulating dual-use item export control policies have been detailed. Thirdly, in terms of facilitating licensing measures, the general license system has been refined, and its applicable conditions and procedures have been specified. Additionally, in alignment with international common practices, for exports meeting specific circumstances, such as outbound maintenance or exhibition activities, exporters can "obtain export certificates by registering and submitting information," allowing for self-declaration and customs clearance. Fourthly, in terms of government services, the regulations require the competent authorities to strengthen guidance, provide better service, update relevant industry export control guidelines in a timely manner, and promptly respond to inquiries from enterprises regarding whether certain items are subject to export control, thereby enhancing policy transparency and administrative efficiency.

Question: What are the main institutional provisions in the Regulations regarding the strengthening of end-user and end-use management?

Answer:

End-user and end-use management are crucial aspects of dual-use items export control. The Regulations strengthen the end-user and end-use management throughout the entire export process. Firstly, they stipulate that an application for dual-use items export license must include documentation proving the end-user and end-use of the dual-use items, and the end-user and end-use must not be altered without authorization. Secondly, if there is a change in the end-user or end-use, the exporter must immediately cease the export, report to the Ministry of Commerce of the State Council, and cooperate with the verification. Thirdly, drawing on international practices, the Regulations establish a watchlist system. They specify that parties who fail to cooperate with end-user and end-use verification may be placed on the watchlist, and exporters engaging in transactions with them will not be eligible for various licensing convenience measures.

Question: The Export Control Law establishes the control list system. The Regulations specify under what circumstances dual-use items can be included on the control list, and what measures can be taken against listed controlled objects?

Answer:

Comprehensive and effective regulatory measures are key to the successful implementation of export controls. The Regulations, based on the Export Control Law, explicitly stipulate that if importers or end-users violate the requirements for end-user or end-use management, pose a threat to national security and interests, or use dual-use items for terrorist purposes, the State Council's commerce department may decide to include them on a control list. Additionally, the Regulations provide detailed scenarios that threaten national security and interests, including situations where importers or end-users use dual-use items for the design, development, production, or use of weapons of mass destruction and their delivery systems, or where they are subject to prohibitions or restrictions on transactions or cooperation by relevant state authorities. The State Council's commerce department may also decide to include such entities on the control list. For parties included on the control list, the Regulations allow for measures such as prohibiting or restricting transactions involving dual-use items.

Question: What specific provisions does the Regulation make regarding supervision and inspection?

Answer:

The Regulations further refine the supervision and inspection system based on the Export Control Law and existing relevant provisions. Firstly, they stipulate that the state shall establish and improve a collaborative enforcement system for dual-use items export control, strengthening comprehensive oversight to promptly detect, prevent, and investigate violations related to the export of dual-use items. Secondly, they specify that the Ministry of Commerce of the State Council shall legally conduct supervision and enforcement on the export of dual-use items. Thirdly, they strictly regulate enforcement procedures, mandating that no fewer than two officers must be present, who should proactively present their enforcement credentials and relevant legal documents; if fewer than two officers are present or if credentials and documents are not shown, the organizations and individuals subject to inspection or investigation have the right to refuse. Fourthly, they outline the measures that can be taken during supervision and inspection, case investigation, as well as the reporting and cooperative obligations of export operators. Fifthly, they stipulate that Chinese citizens, legal persons, and unincorporated organizations must not accept or promise to accept visits or on-site verifications related to export control proposed by foreign governments without consent.

Question: What provisions does the Regulations make regarding the transit, transshipment, through transport, and re-export of dual-use items?

Answer:

To prevent the proliferation of weapons of mass destruction and their delivery systems and to maintain global common security, countries generally, in accordance with United Nations resolutions and relevant international treaty requirements, include the transit, transshipment, through transport, and re-export of dual-use items within the scope of export controls, implementing appropriate and effective regulation. The transit, transshipment, through transport, and re-export of dual-use items fall under the category of export controls and should be regulated in accordance with the Export Control Law and these regulations. However, due to the unique nature of their export forms, the entities applying for export licenses, among other aspects, differ from those of general dual-use item exports. Therefore, the regulations stipulate that the transit, transshipment, through transport, and re-export of dual-use items shall be executed in accordance with the relevant provisions of the Export Control Law and these regulations; specific measures shall be formulated by the Ministry of Commerce in conjunction with the General Administration of Customs.

How to advance the implementation of the Regulations?

Answer:

After the issuance of the Regulations, the Ministry of Commerce will comprehensively carry out the export control of dual-use items under the leadership of the Party Central Committee and the State Council, treating the implementation of the Regulations as a significant measure to implement the spirit of the 20th National Congress of the Party and the Second, Third Plenary Sessions of the 20th Central Committee. The Ministry will attach great importance to and meticulously organize the work, focusing on the following aspects: Firstly, strengthen learning and publicity to enhance ideological understanding. In conjunction with the study and implementation of the spirit of the Third Plenary Session of the 20th Central Committee, organize local commerce authorities and relevant departments to conduct training for export control management staff, guiding local commerce authorities to organize regional training to ensure accurate understanding and strict enforcement of the Regulations. Secondly, enhance collaborative linkage to promote effective implementation. The Ministry of Commerce will strengthen coordination with the Ministry of Foreign Affairs, customs, national security, public security, transportation, financial management, market supervision, and local commerce authorities to comprehensively handle policy formulation, item listing, licensing management, supervision, and law enforcement, forming a joint regulatory effort. Thirdly, improve supporting systems to enhance management efficiency. Expedite the revision of departmental rules and policies related to dual-use item export control, upgrade and improve the e-government system, optimize management processes, ensuring the thorough implementation of all provisions of the Regulations, and continuously improve the modern governance capabilities and levels of export control.

Source: Ministry of Commerce

Editor/Luan Guoxian

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