China tightens control on dual-use items

China has announced measures to tighten controls on the export of specific dual-use items to the United States, in order to safeguard its national security and interests, according to information released on Tuesday by the Ministry of Commerce.

On the basis of Chinese laws, the measures include a ban on exporting such items to US military users or for military purposes, as well as stricter regulations on exports to the US of items related to gallium, germanium, antimony, superhard materials, and graphite.

These materials can be used in semiconductors, infrared technology, optical fiber modules and communication equipment, solar cells, and lithium batteries.

The term "dual-use items" refers to goods, technologies, and services that can be used for both civil and military purposes.

The ministry said in an online statement that any organization or individual in any country or region found violating relevant regulations will be held accountable in accordance with the law.

The statement said that in recent years, the US has overgeneralized the concept of national security, politicized and weaponized economic, trade, and technological issues, abused export control measures, and imposed unwarranted restrictions on the export of certain products to China.

China remains firmly committed to advancing high-level opening-up and strongly opposes any misuse of the concept of national security. The country is willing to strengthen dialogue with relevant countries and regions in the field of export control to jointly promote the security and stability of global industrial and supply chains, according to the statement.

The US Department of Commerce announced updated semiconductor export controls on Monday, and has imposed tighter export controls on China involving semiconductor manufacturing equipment, storage chips and related items.

The US government has also added 136 Chinese entities to its export control list, disrupting trade between China and third-party countries.

In response to the US move, Foreign Ministry spokesman Lin Jian said that China firmly opposes the unjust imposition by the US of unilateral sanctions and extraterritorial jurisdiction on Chinese companies.

China will take decisive actions to safeguard its security and development interests, the spokesman said.

Gong Ting, an associate research fellow on American studies at the Beijing-based China Institute of International Studies, said the US policy measures do not benefit US companies. The measures will only push Chinese companies to become more self-reliant, therefore accelerating the growth of China's technology sector, Gong added.

Chinese semiconductor developers and manufacturers, including Skyverse Technology, Naura Technology Group, and Hwatsing Technology, which have been added to the US export control list, responded on Tuesday.

In separate statements, they emphasized that their key components are now fully self-produced, with sales primarily focused on the domestic market. They added that the latest external restrictions are not expected to have a significant impact on their operations.

Jiangsu Nata Opto-electronic Material, an electronic materials supplier based in Suzhou, Jiangsu province, said the new restrictions won't have a substantial impact on the company. Although there may be some curbs on procuring certain components, the company has already secured adequate stock and plans to adopt domestic alternatives, it said.

The company primarily sources its raw materials domestically, according to Nata's statement.

Anthony Moretti, an associate professor in the Communication and Organizational Leadership Department at Robert Morris University in Pennsylvania, told China Daily that "the news from a few days ago that Huawei's newest smartphone was created with the most sophisticated products was another reminder that China's biggest companies can take any tariff or import-ban punch and remain standing".

This sentiment aligns with the latest trade data. China's foreign trade in chip products totaled $447.41 billion between January and October, a year-on-year increase of 13.6 percent. In the same period, the nation's exports in this category amounted to $131.32 billion, a 19.6 percent year-on-year surge, according to statistics from the General Administration of Customs.

Dutch chip manufacturing equipment provider ASML Holding said in a statement on Monday that the latest export controls by the US government have expanded the scope of restricted technologies to include measurement and software technologies. Additionally, more wafer manufacturers, primarily those located in China, have been added to the US restriction list.

If Dutch authorities conduct a similar security assessment like the US has, exports of deep ultraviolet immersion lithography systems to these specific locations could also be affected, the statement said.