Introduction:
On December 21, 2023, the Ministry of Commerce of China issued a notice revising the latest “Catalogue of Technologies Prohibited from Export and Restricted for Export in China 2023,” in accordance with the Foreign Trade Law of the People’s Republic of China and the Regulations on the Administration of Import and Export of Technologies of the People’s Republic of China. The new “Catalogue” illustrates how China is adjusting its export control policies to protect its domestic technology firms and intellectual property rights. Simultaneously, it serves as a tool to influence foreign direct investment and commercial transactions, as well as restrictions on technology exports. This policy action clearly demonstrates the importance of national security and technological sovereignty in global technology company transactions, and underscores the crucial role of governments in the global technology competition.
Meanwhile, the long-term impact of this policy remains uncertain, but it could potentially lead to further restructuring of the global supply chain. Additionally, it may encourage other countries to seek more diverse sources of raw materials in order to reduce reliance on China’s supply. These changes reflect the complexity and dynamism of the current global technological competition.
China Export Controls: The main highlights of the amendments to the “Catalogue”
- Removal of 6 prohibited export technology items, such as manufacturing technology for green plant growth regulators; removal of 28 restricted export technology items, such as manufacturing technology for medical diagnostic equipment and target feature extraction and recognition technology.
- Addition of 1 prohibited export technology item, namely technology for human cell cloning and gene editing; addition of 3 restricted export technology items, namely technology for hybrid advantage utilization in crops, bulk material handling and conveying technology, and laser radar systems.
- Adjustment of control points and technical parameters for certain technology items, involving 6 prohibited export technology items such as traditional Chinese medicinal resources and production, and 31 restricted export technology items such as cultivation and breeding technology for economic crops, non-ferrous metal metallurgy technology, and large-scale high-speed wind tunnel design and construction technology.
‘China Export Controls’ by GWBMA
In the latest “China Catalogue of Technologies Prohibited from Export and Restricted for Export in 2023,” the Chinese government significantly strengthened export controls on key raw materials, particularly gallium and germanium used in semiconductor production. This measure is aimed at safeguarding national security and interests, especially against the backdrop of current global technological competition and international trade tensions.
Specifically, starting from August 1, 2023, export permits are required for relevant items involving gallium and germanium. This includes a range of items related to these two elements, such as polycrystals, single crystals, wafers, epitaxial wafers, powders, scrap, and other different forms of items.
One of the key purposes of this policy adjustment is to counteract the technological blockade and export restrictions that the United States and its allies have imposed on China in the semiconductor field. The United States and some other countries have already implemented a series of restrictive measures against China, including restrictions on the export of advanced semiconductor manufacturing equipment and materials to China. This has prompted China to take reciprocal measures, strengthening control over the export of key raw materials to increase its bargaining power in international trade negotiations.
Conclusion:
The “Catalogue of Technologies Prohibited from Export and Restricted for Export in China” released in 2023 reflects a new direction for the Chinese government in international technology exchange and national security strategy, especially against the backdrop of increasingly tense global technological competition and trade environments.
The 2023 update focuses on export controls for key raw materials and high-tech products, such as gallium and germanium crucial in semiconductor manufacturing. This indicates that the Chinese government has taken stricter measures to protect domestic technological development and prevent critical technology loss. This policy adjustment aims to enhance the country’s strategic autonomy while ensuring the competitiveness of its technology industry in the global market.
Overall, the release and adjustments to this catalogue are an important measure for China to respond to changes in the international political and economic situation, safeguard national security, and maintain technological advantages. It reflects the proactive strategy and forward-looking layout adopted by Chinese officials in the global technological competition.
Download the original Chinese Catalogue of Technologies Prohibited from Export and Restricted for Export in China 2023
