The “Catalogue of Technologies Prohibited or Restricted from Export in China” has been revised, imposing export restrictions on numerous pesticide technologies.

Release Date:

2020-09-01

On August 28, the Ministry of Commerce and the Ministry of Science and Technology revised and issued the “Catalogue of Technologies Prohibited or Restricted from Export by China” (Ministry of Commerce–Ministry of Science and Technology Announcement No. 38 of 2020, hereinafter referred to as the “Catalogue”).
This revision of the Catalogue solicited opinions from relevant government departments, industry associations, academic and professional circles, and the general public, encompassing a total of 53 technical entries.
First, four technical items prohibited from export have been deleted.
Second, five technical items subject to export restrictions have been removed.
Third, 23 new technical items subject to export restrictions have been added.
Fourth, the control points and technical parameters for 21 technical entries have been revised.
Among them, there are several entries related to agricultural inputs.
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Specifically, the “Catalog” includes the following items related to the agricultural inputs industry:
● In the prohibited export section, the entry for microbial fertilizer technology (code: 050302J) has been deleted.
● The restricted export items, in the field of biology Pesticide Under the Production Technology category (Code: 052603X), the following new control points have been added: “8. Avermectin strains and production technology; 9. Bt strains and production technology; 10. Bacillus subtilis strains and production technology; 11. Kasugamycin strains and production technology; 12. Pyrimidine nucleoside‑type antibacterial agents (Nongkang 120) strains and production technology; 13. Beauveria bassiana and Metarhizium strains and production technology.”
● In the restricted export section, the following has been added: “Unmanned aerial vehicle technology (Code: 184012X), Control Point:”
1. Key technologies for micro‑scale mission payloads in fixed‑wing and rotary‑wing unmanned aerial vehicles of various classes, including autonomous navigation, adaptive control, perception and collision avoidance, high‑reliability communications, airworthiness certification, and airspace management.
2. Key technologies related to various types of sensors used in UAV manufacturing, including inertial measurement units, tilt sensors, atmospheric monitoring sensors, current sensors, magnetic sensors, and engine flow sensors. 3. Anti-UAV technologies such as electromagnetic interference ray guns.
On August 28, a responsible official from the Department of Trade in Services of the Ministry of Commerce answered questions from reporters regarding issues related to the “Catalog.”
I. What is the background and main rationale behind the revision of the “Catalog”?
In accordance with the Regulations of the People’s Republic of China on the Administration of Technology Import and Export, the Ministry of Commerce, in conjunction with the Ministry of Science and Technology, formulates, revises, and publishes lists of technologies prohibited or restricted from export. The primary objectives are to standardize the management of technology exports, promote scientific and technological progress and international economic and technological cooperation, and safeguard national economic security. The last revision of these lists was in 2008, more than a decade ago. Given the rapid advancement of science and technology and the continuous enhancement of China’s scientific and technological capabilities and industrial competitiveness, it has become imperative to update the lists in line with international practice. In this round of revisions, four entries of technologies prohibited from export have been removed, and the content pertaining to technologies subject to export restrictions has been adjusted.
The Chinese government has consistently pursued development through openness, championed open and cooperative innovation, and worked to foster a favorable environment for scientific and technological innovation and international collaboration, thereby facilitating the free flow of factors driving technological advancement. Since the 18th National Congress of the Communist Party of China, China’s technology trade has grown steadily and rapidly. According to statistics from the Ministry of Commerce, in 2013, the value of China’s technology export contracts stood at US$20 billion—less than half the value of its import contracts; by 2019, this figure had risen to US$32.1 billion, nearly matching the value of import contracts. Technology exports have not only optimized China’s export structure but have also helped related trading partners upgrade their industries and boost economic development. Moving forward, we will further strengthen technology‑trade cooperation with countries around the world, continuously improve the business environment for technology trade, and promote the healthy, orderly, and sustainable development of China’s technology trade.
II. What are the main contents of this revision to the Catalog?
This revision of the Catalogue solicited opinions from relevant government departments, industry associations, academic and professional circles, and the general public, encompassing a total of 53 technical entries.
First, four technical items—microbial fertilizer technology, caffeine production technology, riboflavin production technology, and vitamin fermentation technology—have been removed from the list of technologies prohibited for export.
Second, five export-restricted technology entries have been deleted, including technologies related to Newcastle disease vaccine production, natural drug manufacturing, the preparation and processing of functional polymeric materials, the production of chemically synthesized and semi-synthesized pharmaceuticals, and information security firewall software.
Third, 23 additional technology items subject to export restrictions have been added, including technologies for the artificial propagation of wild agricultural plants, breeding and variety development of cashmere goats, production of space materials, design and construction of large-scale high-speed wind tunnels, aerospace bearings, and laser technologies.
Fourth, the control points and technical parameters for 21 technical entries have been revised, covering crop breeding technologies, Aquaculture Germplasm propagation technology, chemical raw material production technology, biological Pesticide In fields such as manufacturing technology, spacecraft tracking and control technology, space data transmission technology, cartographic technology, information processing technology, and vacuum technology.
III. This time, the Ministry of Commerce and the Ministry of Science and Technology have only released adjustments to the “Catalogue of Technologies Prohibited or Restricted from Export by China.” Could you please elaborate on the considerations regarding the “Catalogue of Technologies Prohibited or Restricted from Import by China,” and what are the future plans in this regard?
At present, the Ministry of Commerce and the Ministry of Science and Technology are steadily advancing the revision of the relevant catalogs. Going forward, the “Catalog of Technologies Prohibited or Restricted from Export” will be further streamlined and adjusted; concurrently, in accordance with the “Administrative Measures on the Prohibition and Restriction of Importing Technologies,” revised and promulgated at the end of 2019, the “Catalog of Technologies Prohibited or Restricted from Import” will be substantially simplified, thereby further emphasizing the role of market‑based regulation.
The Chinese government attaches great importance to optimizing the business environment for technology trade and is actively promoting trade facilitation in this sector. Since the beginning of this year, the Ministry of Commerce has issued the “Notice on Further Facilitating Technology Import and Export During Epidemic Prevention and Control,” vigorously advancing paperless registration of technology import and export contracts and exploring measures to relax restrictions on entities engaged in such activities. Moving forward, the Ministry will continue to introduce additional measures to facilitate technology trade, further enhance platforms for promoting technology exchange, and strengthen technological cooperation and exchanges with countries around the world.
4. Could you please clarify how technology exports are defined and specify the forms they encompass? If an enterprise intends to export technologies subject to export controls, what procedures must it follow to obtain the necessary authorization?
According to the Regulations of the People’s Republic of China on the Administration of Technology Import and Export, technology export refers to the transfer of technology from within the territory of China to abroad through trade, investment, or economic and technological cooperation, including the assignment of patent rights, the assignment of patent application rights, the granting of patent implementation licenses, the transfer of trade secrets, the provision of technical services, and other forms of technology transfer. In other words, any activity involving the transfer of technology abroad—whether conducted via trade, investment, or other means—must comply with the provisions of the Regulations of the People’s Republic of China on the Administration of Technology Import and Export.
Technology exports are categorized into three types: free, restricted, and prohibited. For technologies in the “free” category, post‑contract registration and filing are required; for those in the “restricted” category, an export license must be obtained. Since 2007, the Ministry of Commerce has delegated authority to issue export licenses for restricted technologies to the commerce authorities of provinces, autonomous regions, and municipalities directly under the central government. Upon receipt of a technology export application, the commerce authority, in coordination with the science and technology authority, conducts a review and, within 30 working days from the date of receipt, issues a decision approving or rejecting the application. If approved, the applicant is issued a Letter of Intent for Technology Export of the People’s Republic of China. Only after obtaining this letter may the applicant engage in substantive negotiations and conclude a technology export contract. Following the execution of such a contract, the applicant must apply for a Technology Export License of the People’s Republic of China. The commerce authority then verifies the authenticity of the export contract and, within 15 working days of receiving the relevant documents, renders a decision to grant or deny the license. If granted, the authority issues the Technology Export License of the People’s Republic of China. The technology export contract takes effect upon the issuance of the export license.