export-controls 01 August 2024

China imposes new export controls on ‘dual-use’ parts for military and civilian drones

China rolled out new export controls on a long list of drone-related equipment for both military and civilian use, with the Ministry of Commerce (‘MOFCOM’) saying items with certain characteristics ‘shall not be exported without permission’ and violators will face punishment.

The new controls, especially on dual-use items, announced 31 July, follow months of US sanctions aimed at Chinese companies accused of supplying drone parts to Iran, whose combat unmanned aerial vehicles (‘UAVs’) have been reportedly used by Russia in its war in Ukraine. The action includes fresh measures against companies and individuals in mainland China and Hong Kong (see today’s first article).

‘In order to safeguard national security and interests, with the approval of the State Council and the Central Military Commission, it is decided to adjust the export control measures for certain unmanned aerial vehicles and related items,’ MOFCOM said in a statement translated from Mandarin Chinese.

The long list of items subject to the new controls include: aviation engines especially used for certain UAVs; infrared imaging equipment; synthetic aperture radar (‘SAR’) with a range greater than 5 km; lasers for target indication; inertial measurement devices; radio communication equipment and anti-UAV electronic jamming equipment,’

‘Exporters shall go through the export licensing procedures in accordance with relevant regulations, apply to the Ministry of Commerce through the provincial commerce authorities, fill in the export application form for dual-use items and technologies’ and submit relevant documents, the directive said.

It also cautioned businesses: ‘For all unmanned aerial vehicles that are not included in the export control list or not subject to temporary control, the export operator shall not export them if it knows or should know that the export will be used for the proliferation of weapons of mass destruction, terrorist activities or military purposes. Violators shall be punished in accordance with Article 34 of the Export Control Law of the People’s Republic of China.’

https://www.mofcom.gov.cn/zwgk/zcfb/art/2024/art_db6e21907d69404fb473ddb0b248d3d7.html