febrero 01 2024

Key Changes and Updates to Chinese Export Controls in 2023

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China made significant changes to the country’s export control rules in 2023, imposing new controls and modifying existing controls across multiple industries and technical areas. As discussed in our prior Legal Update (China Proposed Changes to the “Catalogue of Technologies Prohibited and Restricted from Export”), China is generally considered to have two distinct export control regimes: (1) the regime pursuant to the Export Control Law of People’s Republic of China (promulgated in 2020); and (2) the regime pursuant to the Foreign Trade Law of People’s Republic of China (last revised in 2022). The year of 2023 saw important changes to both regimes.

Export Control Law Regime Changes

Semiconductor Production Minerals

As we previously reported (China Imposes New Export Controls on Two Minerals Critical to the Manufacture of Semiconductors), on July 3, 2023, China announced that gallium and germanium, two rare minerals that are widely used in the production of semiconductors and other high-technology goods, would require a license for export from China.

Drones and Related Items

In the same month, on July 31, 2023, China’s Ministry of Commerce, the General Administration of Customs, and other Chinese agencies jointly issued two announcements: (1) the Announcement on the Implementation of Export Controls on Drone-Related Items1 and (2) the Announcement on the Implementation of Temporary Export Controls on Drones.2 These announcements adopt new control measures on exports of drones and related items while keeping drone-related controls imposed back in 2015 in place.3 Specifically, the 2015 controls generally apply to drones having an endurance equal to or greater than one hour and those having an endurance equal to or greater than 30 minutes and meeting certain performance threshold. Joint Announcement No. 28 added new performance thresholds for the second category (i.e., drones having an endurance equal to or greater than 30 minutes), such that certain “consumer-level” drones are now subject to a two-year temporary control to address the risk of “diverting high-performance civilian drones for military uses.”4 In addition, during the temporary control period, exports of drones not meeting the control thresholds are also prohibited if the exporter knows or should have known the item would be used for “proliferation of weapons of mass destruction, terrorist activities or military purposes.”5 The new measures also added new controls on certain items that meet the listed technical specifications: (i) drone engines; (ii) key load items, including infrared imaging equipment, synthetic aperture radar, and lasers for target designation; (iii) radio communication equipment; and (iv) civilian anti-drone systems6

Even though the two joint announcements did not mention related technology or software, these items may be controlled elsewhere under the Export Control Law regime as well as the Foreign Trade Law regime. For example, China’s Catalogue of Technologies Prohibited and Restricted from Export (which was also recently updated as discussed below), the main control list under the latter regime, restricts the export of technologies regarding drones and related items (e.g., control item nos. “203912X, drone technologies”; “233913X, laser technologies”; and “203914X, laser radar technologies”).7

Graphite Materials

On October 20, 2023, the Ministry of Commerce and the General Administration of Customs jointly issued an announcement (Joint Announcement No. 39, 2023) modifying the temporary export control measures on graphite materials originally imposed in 2016.8

2024 Dual-Use Catalogue

Finally, on December 29, 2023, the Ministry of Commerce and the General Administration of Customs jointly announced the 2024 version of the Catalogue of Dual-use Items and Technologies Subject to Import and Export Licensing (the “2024 Dual-Use Catalogue”).9 The 2024 Dual-Use Catalogue incorporated some but not all of the new and updated controls announced earlier in the year, and, as noted above, some control measures imposed in earlier years remain in force and must also be complied with.

Foreign Trade Law Regime Changes

Following the comment process we covered previously (China Proposed Changes to the “Catalogue of Technologies Prohibited and Restricted from Export”), on December 21, 2023, the Ministry of Commerce and the Ministry of Science and Technology jointly issued a revised Catalogue of Technologies Prohibited or Restricted from Export, which took effect immediately upon announcement.10 The revised catalogue reduced the number of controlled items from 164 to 134 through 34 deletions, four additions, and 37 modifications. These changes affect several industries and technical areas. Notable changes include new controls on laser radar systems and modified controls on metallurgical technologies for non-ferrous metals.

These changes and updates announced in 2023 reflect the complex and evolving nature of China’s export control measures. Of particular note, despite rapid developments after 2020, many pre-2020 Chinese export control authorities and discrete control lists (ones that have not been consolidated into the two catalogues discussed in this Legal Update) remain in force. Thus, interested parties should ensure careful review of the application of these export control measures to their operations and continue to monitor relevant developments.

 


1 Joint Announcement No. 27, 2023, Ministry of Commerce, General Administration of Customs, State Administration of Science, Technology and Industry for National Defense, and the Equipment Development Department of the Central Military Commission (“JA No. 27”), http://www.mofcom.gov.cn/article/zwgk/gkzcfb/202307/20230703424616.shtml.

2 Joint Announcement No. 28, 2023, Ministry of Commerce, General Administration of Customs, State Administration of Science, Technology and Industry for National Defense, and the Equipment Development Department of the Central Military Commission (“JA No. 28”), http://www.mofcom.gov.cn/article/zwgk/gkzcfb/202307/20230703424598.shtml.

3 See, e.g., JA No. 28.

4 Ministry of Commerce, Answers to Reporter Questions Regarding Drone Export Controls (Jul. 31, 2023), http://www.mofcom.gov.cn/article/syxwfb/202307/20230703424756.shtml.

5 JA No. 28.

6 JA No. 27

7 Joint Announcement No. 57, 2023, Ministry of Commerce and Ministry of Science and Technology, http://www.mofcom.gov.cn/zfxxgk/article/gkml/202312/20231203462079.shtml.

8 Joint Announcement No. 39, 2023, Ministry of Commerce and General Administration of Customs, Announcement on Optimizing and Adjusting Temporary Export Control Measures for Graphite Items, http://www.mofcom.gov.cn/article/zcfb/zcdwmy/202310/20231003447368.shtml.

9 Joint Announcement No. 66, 2023, Ministry of Commerce and General Administration of Customs, http://exportcontrol.mofcom.gov.cn/article/zcfg/gnzcfg/zcfggzqd/202312/941.html.

10 Joint Announcement No. 57, 2023, Ministry of Commerce and Ministry of Science and Technology, http://www.mofcom.gov.cn/zfxxgk/article/gkml/202312/20231203462079.shtml.

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