12 January 2021
On August 28, 2020, the Ministry of Commerce (“MOFCOM”) and the Ministry of Science and Technology (“MOST”) published the amended China’s Catalogue of Technologies Prohibited and Restricted from Export (“Catalogue”). The Catalogue took effective on the same day. As a general note, the Catalogue lists technologies that are completely “prohibited” from being exported, and those that are “restricted” from being exported subject to a licensing regime. For each technology being prohibited or restricted, further “control points” describe the technological content that is prohibited or restricted.
Under China's export regulatory framework, the "export" of technologies covers a wide range of forms, from outright sale to licensing the right to use. In addition, the scope of “export” must also be read in conjunction with the newly promulgated PRC Export Control Law (which took effect on 1 December 2020). The PRC Export Control Law significantly expands the parameter of "export" to include "deemed export", i.e. the provision of controlled items by Chinese citizens, legal persons or organisations (irrespective of their locations) to foreign institutions or individuals.
In the amended Catalogue, amongst many technologies, China has tightened the export control of advanced satellite-related technology, with a particular reference to “Beidou Navigation Satellite System”. Beidou Navigation Satellite System is a home-grown satellite navigation system developed by China. China completed the third generation of the system with the successful launch of the final satellite on 23rd June 2020.
The key updates of the Catalogue in the satellite field are set out in the tables below.
• Prohibited technology
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(III) Transportation Equipment Manufacturing Industry |
6. Revise the key point for control of "spacecraft TT&C technology" (No. 053701 J) as "satellites and their on-board radio remote control and remote sensing coding and encryption technology used in China." |
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(V) Telecommunications and Other Information Transmission Services |
8. Revise the key points for control of "spatial data transmission technology" (No.: 056002 J) as "satellite data encryption technology involving any of the following circumstances: (1) confidentiality principle, scheme and circuit design technology; 9. Revise the key points for control of "satellite application technology (No.: 056003 J)" as "Beidou Satellite Navigation System information transmission encryption technology". |
• Restricted technology
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(XIV) Telecommunications and other Information Transmission Services |
43. Delete Key Points 1 and 3 for control of "spatial data transmission technology" (No.: 056003 X). 44. Delete Key Point 2 for control of "satellite application technology" (No.: 056004 X), and revise in Key Point 1 for control of "double satellite navigation and positioning system" as "Beidou satellite navigation and positioning system".
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The last update of Catalogue took place in 2008, when Beidou Navigation Satellite System was still being developed.
For further information, please contact:
Michelle Chan, Partner, Bird & Bird
michelle.chan@twobirds.com
