China's Export Control Law Redefines National Security, Deters Business with Foreign Customers

Foreign companies must contend with fast-changing export controls and sanctions regimes on both sides of the Pacific following China's enactment of a new export control law. In conjunction with China's new Unreliable Entity List regime, the export control law puts foreign companies in the increasingly difficult position of having to choose between compliance with U.S. or Chinese export controls.

On Oct. 17, the Standing Committee of China's National People's Congress passed the PRC Export Control Law (中华人民共和国出口管制法) to take effect Dec. 1. The new law covers controls over a range of "controlled items," including dual-use, military, and nuclear items, and unifies various existing export controls laws and administrative regulations such as the PRC Foreign Trade Law (中华人民共和国对外贸易法).