China makes key changes to Draft Export Control Law and seeks comments

Two years after the release of the first draft of the Chinese Export Control Law (the Law) in 2017 (the 2017 Draft), on 28 December 2019, a revised draft was published on the website of the National People's Congress for round-two public comments until 26 January 2020 (the Current Draft Law).

The structure of the Current Draft Law remains largely the same as the 2017 Draft, and is organized by six sections: general regime and definition, control policy and lists, control measures, specific rules for dual-use items and military items, enforcement and punishment, and miscellaneous. With that said, by deleting 13 provisions and consolidating some others, the current draft law is significantly shorter than the 2017 draft with only 48 provisions, while the latter had 70.

While many of the substantive rules remained largely the same as in the 2017 draft, the current draft law also makes certain key changes in the scope of the Chinese export control regime, including; deletion of provisions on reciprocity and special control measures at the time of war and other emergencies, the addition of a separate provision for an internal compliance program, important changes around end-use and end-users including compulsory obligation for exporters to submit the relevant certification to the Chinese government , and significant increases in fines.

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