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China brings in new export controls on hi-tech products amid US rivalry

In July Beijing imposed export restrictions on two critical elements – gallium and germanium and several of their compounds – in retaliation for earlier measures targeting the Chinese semiconductor industry.

The latest export controls are intended to “safeguard national security, the public interest or public morality”, the ministries said.

Other reasons cited included “protecting the health or safety of humans, animals and plants and the environment”, as well as complying with domestic laws or international treaties and agreements.

China exports of gallium and germanium surged before controls kicked in

Technology for the extraction, processing, refining and use of rare earth metals – one of China’s essential tools in the tech war – also remain subject to export controls.

China accounts for over 70 per cent the world’s output of these metals, which are key to making some electronic items and military equipment, and has a monopoly on some processing capacities.

The ministries in their notice specifically mentioned that “dual-use technologies [which can be used] for both military and civilian purposes shall be included in the export control management”.

New technological categories that did not feature in a list issued in 2020 are also included in the latest controls. These include laser radars, crop hybridisation, human cell cloning and gene editing, as well as bulk cargo handling.

Chna has already imposed controls on gallium and germanium, two critical rare earth metals. Photo: Reuters

The notice specified that laser radars which have a certain power, pulse width, detection range, accuracy or resolution must not be freely exported. It also retains restrictions on technologies used to make deep-ultraviolet lasers, as well as some key single crystals.

The list also expands several existing categories, including other drone technologies.

The new controls also include technology used to make optical/infrared sensors, synthetic aperture radars and laser radars, and other critical items used in unmanned aerial vehicles.

US opposes China’s export controls, saying they justify supply chain moves

In addition, UAV flight control systems as well as algorithms and software for autonomous navigation, path planning and obstacle avoidance also face restrictions.

Notably the finalised list has removed “manufcaturing technology for photovoltaic silicon wafer”, which was included in a draft proposal issued in January. China dominates the global solar wafer industry with about 97 per cent of production.

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