CHINA Trends and Developments Contributed by: Xing Nan (Nancy), AnJie Broad Law Firm
Export control Export control refers to China’s adoption of prohibitive or restrictive measures on the transfer of controlled items from within the territory of the People’s Republic of China to outside the country, and on the provision of controlled items by citizens, legal persons and unin - corporated organisations of the People’s Republic of China to foreign organisations and individuals. Export permit China implements a unified export control system and manages it through the formulation of control lists, directories or catalogues, and the implementation of export licences. China implements a licensing system for the export of controlled items. For controlled items listed in the export control list or temporarily controlled items, export operators must apply for a licence from the state export control authorities. Management department The departments of the State Council and the Central Military Commission of the People’s Republic of China are responsible for export control work in accordance with their respective duties. Other relevant depart - ments of the State Council and the Central Military Commission are responsible for export control-related work in accordance with their respective duties. The state has established an export control co-ordination mechanism to co-ordinate major export control mat - ters. Export control internal compliance system If an export operator has established an internal com - pliance system for export control and it operates well, the state export control authorities may grant it gen - eral licences and other convenient measures for the export of relevant controlled items. Penalties Violations may be punished with warnings, orders to stop illegal activities, confiscation of illegal gains, fines, and even orders to suspend business for rec - tification, until the revocation of the export qualifica - tion of related controlled items. In addition, two spe - cific types of conduct – namely, “exporting controlled items prohibited from export” and “exporting con -
territorial Application of Foreign Legislation and Other Measures”. Taking into account the above situation and reserving legal space for similar situations in the future, the Law of the People’s Republic of China on Countering Foreign Sanctions specifically makes a coherent and compatible provision, namely, Article 13 stipulates, “[i]n case of any act endangering Chi - na’s national sovereignty, security and development interests, other necessary measures may be taken as stipulated by relevant laws, administrative regulations and departmental rules, in addition to this Law.” Export Control Law of the People’s Republic of China Extra-territorial effect of the Export Control Law of the People’s Republic of China The Export Control Law of the People’s Republic of China has an extra-territorial effect. The Export Con - trol Law of the People’s Republic of China stipulates that organisations and individuals outside the territory of the People’s Republic of China that violate rele - vant export control regulations, endanger the nation - al security and interests of the People’s Republic of China, and impede the fulfilment of international obli - gations such as non-proliferation shall be dealt with in accordance with the law and held accountable for their legal responsibilities. Controlled items China implements export controls on dual-use items, military products, nuclear products, and other goods, technologies, services and other items related to maintaining national security and interests and ful - filling international obligations such as non-prolifer - ation. Controlled items include data such as techni - cal information related to the items. Dual-use items refer to goods, technologies and services that have both civilian and military uses or help enhance mili - tary potential, especially those that can be used to design, develop, produce or use weapons of mass destruction and their delivery vehicles. Military prod - ucts refer to equipment, special production equipment and other related goods, technologies and services used for military purposes. Nuclear refers to nuclear materials, nuclear equipment, non-nuclear materials for reactors, and related technologies and services.
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