II. Ongoing Improvements to the Legal and Regulatory System for Export Controls
Committed to the basic principle of pursuing law-based governance in all respects, China continues to improve its legal and regulatory system for export controls. To provide law-based and institutional export control guarantees, it bases its efforts on its national conditions and draws upon helpful experience from overseas.
1. Establishing and Improving a Legal System for Export Controls
Since the beginning of reform and opening up in 1978, profound changes in the internal and external environment have impacted economic development in China. There have been continuous improvements in China's socialist market economic system, and its law-based export control work has improved steadily. Since the 1990s, China has promulgated six administrative regulations: Regulations of the People's Republic of China on the Administration of the Controlled Chemicals, Regulations of the People's Republic of China on the Control of Nuclear Export, Regulations of the People's Republic of China on Administration of Arms Export, Regulations of the People's Republic of China on the Control of Nuclear Dual-use Items and Related Technologies Export, Regulations of the People's Republic of China on Export Control of Missiles and Missile-related Items and Technologies, and Regulations of the People's Republic of China on Export Control of Dual-use Biological Agents and Related Equipment and Technologies. The Ministry of Commerce, the Ministry of Industry and Information Technology, the General Administration of Customs, the State Administration of Science, Technology and Industry for National Defense, China Atomic Energy Authority, the Equipment Development Department of the Central Military Commission (CMC), and other related departments have introduced a number of departmental rules and normative documents setting detailed provisions on matters related to export controls, including specific stipulations on particular items, license regulation and enforcement supervision, and documents on implementing relevant UN Security Council resolutions.
In October 2020, China promulgated the Export Control Law, which includes clear provisions on systems, measures, and international cooperation on export controls. It also sets a basic institutional framework, and unified rules for export control policies, a control list, temporary controls, a restricted name list, and supervision. The Law was formulated in the light of changing circumstances, drawing on China's own experience in export controls and taking into account standard international practices. It raises China's export control legislation to a higher level, makes comprehensive arrangements for China's export control system, and provides a full coverage of controlled items, legal subjects and other aspects of export control. To make sure that the Export Control Law is effectively implemented, China's authorities have introduced, revised, and rescinded supporting administrative regulations and departmental rules. In addition to the Export Control Law, China's Foreign Trade Law, National Security Law, Data Security Law, Nuclear Safety Law, Customs Law, Administrative Licensing Law, Administrative Punishment Law and Criminal Law also provide a strong legal base for the enforcement of export control measures. China now has in place a well-organized basic legal system on export controls with well-coordinated laws, administrative regulations and departmental rules and a balanced structure, which provides a solid legal foundation for developing a modern export control system with Chinese characteristics.
2. Building a Coordinated and Efficient Export Control Regime
Export controls involve multiple departments of the State Council and the CMC. China has established a sound working mechanism and clearly assigned roles and responsibilities among departments, which provides a solid institutional guarantee.
Regulatory system for export control of dual-use items.
· Export of nuclear dual-use items is regulated by the Ministry of Commerce jointly with the China Atomic Energy Authority;
· Export of dual-use biological items is regulated by the Ministry of Commerce jointly with the Ministry of Agriculture and Rural Affairs and the National Health Commission, among others as required;
· Export of dual-use items related to certain chemicals is regulated by the Ministry of Commerce;
· Export of dual-use missile-related items is regulated by the Ministry of Commerce jointly with the State Administration of Science, Technology and Industry for National Defense and the Equipment Development Department of the CMC, among others as required;
· Export of commercial cryptography is regulated by the Ministry of Commerce jointly with the State Cryptography Administration - the Cryptography Law stipulates that the export control list of commercial cryptography shall be formulated and published by the Ministry of Commerce in conjunction with the State Cryptography Administration and the General Administration of Customs;
· For the export of controlled chemicals, the Ministry of Industry and Information Technology regulates exporter accreditation jointly with the Ministry of Commerce, and is responsible for undertaking specific export review.
Regulatory system for export control of military products. The State Administration of Science, Technology and Industry for National Defense, and the Equipment Development Department of the CMC, regulate military exports in accordance with the division of their duties. This mainly includes reviewing the franchise qualification of military exports, export project proposals, projects and contracts for military exports, approving and issuing licenses for military exports, formulating rules regulating related business, supervising export activities, and punishing violations.
Regulatory system for export control of nuclear materials. The export of nuclear materials is regulated by the National Atomic Energy Authority and the Ministry of Commerce in cooperation with other departments. These exports are conducted by entities designated by the State Council. They are carried out in strict accordance with three principles - that nuclear materials should be exported for peaceful purposes only, that they should be under the supervision and safeguard of the International Atomic Energy Agency, and that they must not be transferred to third countries without the permission of the Chinese government. Competent authorities carry out rigorous reviews of nuclear exports and impose severe penalties on violators.
The General Administration of Customs cooperates closely with related authorities to regulate the export of controlled items. Among other duties it also engages in investigating and handling violations, carries out risk prevention and control, and supervises law enforcement.
