China's revised tech export catalogue: No need for fuss

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Central University of Finance and Economics in Beijing. The article reflects the author's opinion, and not necessarily the views of CGTN.

China's Ministry of Commerce and Ministry of Science and Technology have revised the Catalogue of Technologies Prohibited and Restricted from Export recently. Without any questions, the move attracted notice from some other countries. They don't even have the patience to review the catalogue carefully before immediately blaming China for protecting its key technologies. Most of them don't even bother to compare the new catalogue with the last version, which would have revealed a reduction in protected technologies in the catalogue from 164 to 134 items.

China is not the only country to issue the Catalogue of Technologies Prohibited and Restricted from Export. In fact, China's restrictions to technology exports are less strict than those of other economies.

The United States has stringent export controls on key technologies, especially in the domains of defense, security, and other sensitive technology areas. Through a series of regulations such as the Export Administration Regulations (EAR), the U.S. restricts the export of high-tech products, military-related items, and dual-use technologies – those that can be used for both civilian and military applications – to certain countries.

The Bureau of Industry and Security (BIS) is a dedicated agency responsible for formulating and enforcing export control policies. For example, in recent years, the U.S. has paid particular attention to sectors like semiconductor manufacturing, artificial intelligence, and quantum computing in regard to exports to China, and has escalated export restrictions in specific circumstances. The United States has a complex set of export control measures specifically targeting the export of sensitive technologies to China.

These measures have been evolving, especially against the backdrop of heightened trade tensions and escalating strategic competition between the U.S. and China. The U.S. government has enacted a series of policies and regulations aimed at protecting national security and preventing the loss of critical technologies. In recent years, the U.S. has identified ZTE and Huawei, two Chinese tech giants, as national security threats and prohibited U.S. companies from doing business with them, which includes exporting sensitive technologies to these enterprises.

Japan controls the export of technology through its Foreign Exchange and Foreign Trade Act. It covers not just the export of equipment and materials but also the transfer and provision of technology itself and the regulations concerning products and technologies that have implications for international security. In recent years, Japan has implemented more rigorous controls in specific areas such as the semiconductor industry to maintain its competitive edge and to prevent crucial technologies from flowing to countries that might affect their national security and economic interests.

The European Union (EU) administers a uniform directive for export control among member states through the Dual-Use Items Export Control Regulation. This regulation applies to both traditional arms and military equipment and high technology and materials that can be used in weapons manufacturing. The EU control list includes a variety of key technologies, encompassing nuclear technology and chemical and biological weapon technology.

China's revision of its Catalogue of Technologies Prohibited and Restricted for Export is a routine update for the world's second largest economy to adapt to the latest technological advancements and better manage technology trade. For some technologies, the significance of continuing bans or restrictions have diminished, and at the same time, new technologies are constantly emerging, necessitating adjustments to the relevant catalogues according to the objective needs dictated by the current situation. Unlike the United States, China's new Catalogue of Technologies Prohibited and Restricted for Export does not target a specific industry or economy.

Maintaining the overall national security concept is essential for the steady and long-term opening of technology to the outside world. Certain key technologies and products are related to national and public safety. By limiting or prohibiting the export of these technologies and products, the intent may be to prevent their use for illegal purposes. Some technologies are crucial to China's economic development. Restricting or prohibiting their export can protect the nation's economic interests, especially the development of high-tech industries and the integrity of related industrial chains.

It also helps to avoid economic risks caused by over-reliance on external markets. Some of the technologies that are restricted or prohibited from export may be related to international treaties and agreements, such as those pertaining to non-proliferation of weapons, or other restrictive trade technologies mutually agreed upon by various countries. Furthermore, there may be insufficient protection of intellectual property rights in some countries or regions. By restricting or prohibiting exports, the risk of intellectual property infringement can be somewhat managed.

It should be noted that the decision to prohibit or restrict the export of technology is dynamic and adjusts according to the country's strategic needs, international situations, and actual developments in technology. Furthermore, such measures are often accompanied by corresponding regulations and enforcement standards, which are constantly updated to adapt to new industry trends and changes in the international situation.

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