On behalf of the more than 220 members of the US-China Business Council (USCBC), we appreciate the opportunity to submit comments on the draft Export Control Law of the People’s Republic of China (hereby referred to as “the Draft”) to the National People’s Congress (NPC). We appreciate the NPC’s efforts in unifying China’s export control regime and streamlining relevant regulatory requirements.
We note that the current Draft has taken a few positive steps to reflect previous concerns expressed by our members. We are pleased to see the removal of the reciprocity principle and national security assessment from the draft. We are also pleased to see that the Draft has removed the terms “development interest” and “economic development” in assessing export control licenses, to make sure the scope of export controls does not go beyond what is necessary for national security concerns.
However, beyond commendable progress in the areas mentioned above, USCBC and its member companies would like to encourage the NPC to take note of additional feedback to further improve the Draft. Our recommendations are not limited to revisions to the Draft, but also cover items suggested to be clarified in the law’s subsequent implementation rules. In particular, we would like to highlight the following suggestions:
- Clarify the scope of export controls and national security
- Define activities considered “deemed exports”
- Consider relaxing requirements for end user statement and certificate
- Include a voluntary self-disclosure (VSD) regime
- Grant a lengthy and orderly transition period
Read the full comments: