China publishes white book on export controls

China's State Council Information Office (SCIO) released a white paper titled “China’s Export Controls” to clarify the government's export control policies. The Export Control Law, enacted and implemented in 2020, was an important step to develop a full-fledged legal system for export control. China has actively fulfilled non-proliferation and other international obligations, adopted internationally-accepted practices, such as establishing an export control list, end-users and end-uses management, optimized license management, new enforcement methods, reinforced non-compliance penalties, and an improved compliance regime, officials of the Ministry of Commerce (MOFCOM) said at a press conference.

In April 2021, the Ministry of Commerce also published the “Guiding Opinions on Establishing the Internal Compliance Program for Export Control by Exporters of Dual-use Items and the Guidelines for Internal Compliance for Export Control of Dual-use Items” to assist companies in improving their internal compliance systems.

The Ministry said that China would continue the policy of opening up and promote the trade of export-controlled items consistent with compliance requirements. The country will improve license management and end-user certificates according to international practices. At the same time, China will strengthen enforcement to tackle export control violations and promote international exchanges and cooperation. Multilaterally, China advocates that the United Nations, as the most universal organization in the world, should play a central role in initiating an open, inclusive and just dialogue process and safeguarding the legitimate rights of developing countries to the peaceful use of technology.

Officials also said that some countries – referring among others to the United States – “have generalized the concept of national security, fabricated excuses, directed state power to intervene in the normal trade flow and market transactions, and frequently used export control as a tool to attack and bully other countries,” which has disrupted international supply chains. A second challenge is countries applying double standards on non-proliferation, and a third challenge is the need to enhance international coordination on export control. “China believes that in export control, the international community should move forward in a fair, reasonable, and non-discriminatory direction, remain united and enhance cooperation, resist discriminatory practices, and join hands in tackling global issues and building a brighter future for humanity.”

China holds that all countries should firmly stand by the international system centered on the United Nations and the international order underpinned by international law, safeguard the authority of international treaties and mechanisms that uphold true multilateralism, and adopt a common, comprehensive, cooperative and sustainable outlook on global security. The legitimate right of countries to the peaceful use of controlled items, or scientific and technological research, should not be obstructed.

MOFCOM reiterated that opening-up is one of China’s basic national policies and expanding opening-up is the only path to high-quality development. China is still dedicated to expanding openness, speeding up the building of an open economic system at a higher level, and pursuing opening-up on all fronts. China will continue to share development opportunities with the rest of the world. China will not change its commitment to economic globalization and advance trade of export-controlled items that is consistent with compliance requirements.

One Chinese expert said that export controls will reduce security risks, noting that effective export controls can reduce security threats, prevent the risk of conflicts, ease tensions and create a stable and predictable international trade environment.

The White Paper on China's Export Controls can be accessed here.