Anamika Dey, editor
Brief news
- China is implementing new export control regulations for dual-use items ahead of President Xi Jinping’s visit to Russia, effective December 1.
- The measures respond to U.S. sanctions against Chinese firms allegedly supplying dual-use products to Russia.
- The regulations will require exporters to disclose end-users and may focus on aerospace-related materials and critical minerals.
Detailed news
Prior to President Xi Jinping’s visit to Russia, China has implemented a series of export control regulations for dual-use items, which are commodities or technologies that can be employed for both military and civilian purposes.
As a result of the intensification of sanctions imposed by the United States against Chinese enterprises, which the United States believes have been providing dual-use products, such as drones, to support Russia’s military operation in Ukraine, the laws have been implemented.
For the purpose of “safeguarding national security and interests, promoting global cooperation on non-proliferation, strengthening and standardizing export controls on dual-use items,” the State Council issued a statement on Saturday, according to a translation of the statement that was made available by CNBC in Chinese. The measures will go into effect on December 1.
It has been reported by China’s Ministry of Foreign Affairs that President Xi Jinping will be present at the BRICS meeting that will take place in Kazan, Russia, from Tuesday to Thursday.
She stated that China had never given weapons to either Russia or Ukraine, and that it rigorously supervised shipments of dual-use equipment, including drones. Mao Ning, a spokeswoman for the Chinese foreign ministry, reaffirmed China’s opposition to the sanctions imposed by the United States during a news briefing on Friday.
Last week, Washington increased its sanction list to include two Chinese companies, alleging that they were involved in the production of aerial drones that were employed by Russia in its conflict with Ukraine.
Benjamin Cavender, managing director of China Market Research Group, suggested that the initial collection of items on the export control list may include materials and technology that could be utilized in aerospace applications, “in light of the significant role drones have played in recent conflicts.”
He also stated that China has made an effort to demonstrate that it is adhering to the same standards as other countries in order to regulate trade in dual-use products.
However, Alicia Garcia-Herrero, the chief economist for Asia-Pacific at Natixis, has hinted that Russia may be exempted from the potential export controls.
According to a Chinese official statement, the new regulations will establish a licensing system for the export of dual-use items and compile a list of restricted goods. Exporters of these goods will be required to disclose the ultimate consumers and intended use of the exported goods.
The increased regulation “clearly represents a tit-for-tat approach to trade in dual-use goods,” stated Alex Capri, a senior lecturer at the National University of Singapore. He also suggested that China may be concentrating on items such as rare earths and critical minerals.
Source: CNBC News
