China's Technology Export Adjustment Proposal Aligns with Global Practices

China's recent proposal to modify its catalog of technologies subject to export bans or restrictions has been recognized by industry experts as a move in line with global practices. The Ministry of Commerce began this initiative by issuing a notice to solicit public opinions on potential adjustments to the catalog, which is crucial for regulating technology trade.

The adjustments aimed at refining the catalog include adding one technology item, revising another, and eliminating three from the list. Besides introducing more stringent export restrictions on battery cathode material preparative technology, the proposal also plans to enforce tighter controls on technologies related to the extraction of metallic gallium and lithium, both of which play vital roles in key sectors like semiconductors, electric vehicles, and consumer electronics.

Public consultation on these proposed changes will be open until February 1, which provides an opportunity for stakeholders to voice their opinions. Experts assert that by aligning its export control practices with international standards, China will integrate more effectively into the global technological ecosystem, enhancing its collaborations and fostering shared progress.

According to Ding Rijia, an industrial economy professor, the revisions are aimed at achieving a balance between safeguarding essential technologies and mineral resources while still promoting global innovation and technological exchanges. Cui Fan, a professor specializing in international trade, echoed this sentiment by emphasizing that the adjustments facilitate a more managed approach to the export of technologies with national security importance while aiding domestic companies in accessing international markets legally.

The catalog serves as a critical legal framework that outlines which technologies are deemed prohibited or restricted for export, similar to frameworks in the United States, European Union, Japan, and South Korea. The US Department of Commerce’s Bureau of Industry and Security (BIS), for example, is responsible for enforcing laws and policies surrounding the export and re-export of technology, with a primary focus on national security and maintaining strategic leadership in technology.

In late 2023, the Chinese government released an updated version of this catalog, reducing the number of controlled items from 164 down to 134, as part of their commitment to modernizing and optimizing their technology export regulations.