China's Export Control Law Draft under Second Review by the NPC

On June 28, 2010, the Standing Committee of China's National People's Congress (NPC) reviewed the second draft of China's Export Control Law (the "Law"). Six months had passed since the Law was first reviewed by the NPC in December 2019 ("2019 Draft") and it has been two years since the Ministry of Commerce released the first draft of the Law in 2017 ("2017 Draft"). The new draft Law has been made public on the website of the NPC soliciting public comments until August 16, 2020.

Compared to the 2019 Draft (please see our article which discussed the previous drafts), which consolidated and deleted nearly 20 provisions in the 2017 Draft, the new draft did not make drastic changes to the structure or fundamentals of the regime, but is more focused on clarifying previously existing rules. We highlight the key changes below.

In summary, the new draft now explicitly provides for the extraterritorial application of the Law, makes it possible to extend the temporary control period beyond two years, strengthens supervision over end-users and end-uses, adds a separate provision prohibiting service providers from facilitating illegal export activities, clarifies Customs' role in export control enforcement, and further stresses the importance of having a compliance program.

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