China has taken a series of strict and effective measures to export high-tech products and prevent the outflow of sensitive technologies. These measures are in line with international rules and demonstrate China’s responsibility as a responsible major country. The following are China’s main practices and policy directions in this area:
- Improve the legal system
Export Control Law (implemented in December 2020):
China has clarified the control requirements for the export of sensitive items and technologies through legislation, and established a unified export control framework covering nuclear, biological, chemical, military and dual-use technologies. The law requires companies to conduct risk assessments on export items and apply for licenses.
“Technology Import and Export Management Regulations”:
Licensing management is implemented for restricted technologies, and the export of technologies that endanger national security or public interests is prohibited.
Policy highlights:
Adopt the internationally accepted “control list + end-user and use management” model, and dynamically adjust the “Dual-use Items and Technologies Export Control List”.
Set severe penalties for violations (such as a fine of 10 times the illegal income) to strengthen legal deterrence.
- Establish a full-process supervision mechanism
Compliance on the enterprise side:
High-tech enterprises are required to establish an internal compliance review system, such as Huawei’s “Trade Compliance Committee”, to conduct technical classification and risk assessment of export products.
Collaboration on the government side:
The Ministry of Commerce, Customs, State Administration of Science, Technology and Industry for National Defense and other departments work together to achieve data sharing and intelligent monitoring through the “Export Control Compliance Information System”.
Technical screening:
Apply artificial intelligence and big data technologies (such as the “China Customs Trade Big Data Platform”) to identify abnormal transactions, such as real-time tracking of the export of high-precision chip manufacturing equipment.
- Precise control of key areas
List of emerging technologies:
The “Catalogue of Prohibited and Restricted Export Technologies” will be released in 2023, with 23 new restricted items, including photovoltaic silicon wafer preparation technology, rare earth refining process, artificial intelligence algorithm, etc.
Dual-use technology:
Implement “white list” management for drones, quantum communications and other fields, and only authorized enterprises are allowed to export.
Talent flow management:
Regulations such as the “Regulations on the Management of Human Genetic Resources” prevent the leakage of biotechnology through academic cooperation. In 2022, a genetic company was fined 100 million yuan for illegal data sharing.
- International cooperation and standard docking
Participate in multilateral mechanism negotiations such as the Wassenaar Arrangement, and establish cross-border regulatory cooperation with ASEAN and other countries since 2021.
The China-EU Semiconductor Supply Chain Security Dialogue Mechanism has prevented many sensitive technology transactions that were transited through third countries.
- Typical cases and results
In 2022, a certain aerospace materials company was revoked for exporting composite materials without a license.
In 2023, the customs seized a smuggling case of lithography machine parts disguised as ordinary goods, involving an amount of more than 300 million yuan.
According to UNCTAD data, China’s high-tech product export compliance rate increased from 91% in 2018 to 98.2% in 2023.
Future direction
Accelerate independent innovation and reduce dependence on foreign technology. In 2023, R&D investment will exceed 3.3 trillion yuan (accounting for 2.64% of GDP).
Promote the construction of “Export Control Compliance Demonstration Zone” and cultivate more than 3,000 compliance demonstration enterprises.
Through the balanced strategy of rule of law, marketization and internationalization, China has not only ensured the stability of the global industrial chain, but also effectively maintained national security and technological advantages. This model provides an important reference for developing countries to cope with technological security challenges.