China Tightens Export Rules On Nuclear, Biotech And Missile Technologies To Bolster National Security Amid Global Tensions

China is implementing stricter export controls on items with both military and civilian applications.

What Happened: The new regulation, approved by the State Council last week, aims to safeguard national security. The Ministry of Commerce had issued a draft of these rules for public feedback in April 2022. The regulation refines the 2020 export control law, addressing fragmented regulations on exports of nuclear technology, missiles, biotech, and chemicals, South China Morning Post reported on Monday.

Lu Xiang, a research fellow at the Chinese Academy of Social Sciences, noted the regulation is timely as new technologies and materials have shown military applications. Examples include communication and remote control technologies, as well as key raw materials. Lu emphasized the need for balancing normal trade with restrictions on dual-use exports.

China's export control law, effective since December 2020, mandates licenses for sensitive technology exports. It also allows Beijing to act against countries violating restrictions or endangering national security. Since last year, China has tightened controls on drones, aerospace equipment, and critical minerals like gallium and germanium.

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The U.S. and its allies have accused China of supplying dual-use products to Russia, fueling the Ukraine invasion, which Beijing denies.

Chong Ja Ian, associate professor at the National University of Singapore, stated that further export controls could accelerate the global fragmentation of technology and supply chains.

Why It Matters: The timing of China’s new export controls coincides with escalating tensions between China and the United States. The Biden administration recently announced significant tariff hikes on Chinese imports. These tariffs, which include a 100% duty on Chinese electric vehicles and 50% on solar cells, are set to take effect on Sep. 27. The U.S. Trade Representative’s determination also includes a 50% duty on Chinese semiconductors, which will begin next year.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari