Ten questions and answers on China’s new Export Control Law

Posted by Wang, Yi on December 19, 2020

Our dialogue with export control practitioner Lauren Murton on ten technical questions on China’s new Export Control Law (ECL) is available at WorldECR with courtesy summary below:

“ECL presents a positive development that will reduce the opagueness of export licensing procedures and intervention by national security bodies in China. The ECL has extra-territorial jurisdiction but it will have to observe the “principles of equality and reciprocity” enshrined in international treaties according to article 32 of ECL.”

“Enforcement (against non-Chinese entities/individuals) must consider foreign blocking statutes, and factor in the potential chilling effect on foreign investment that is critical to China’s current economic prosperity (and thus considered ‘essential’ to China’s national security.”

“[Operationally,] MOFCOM subordinates in Beijing and Shanghai respectively have gone live with their application portals (bifurcated for dual-use items and controlled technologies) to facilitate public access to licensing requirements and procedures.”

“To safeguard assets and individuals within China and potentially affected non-Chinese operations during this period of uncertainty, businesses must
proactively conduct internal due diligence, on both operations and corporate structures, and encourage self-reporting within organisations to map, identify and halt any risks violating ECL and China’s evolving sanction regime.”

Should you have any questions, please feel free to contact us or your trusted counsels.