New Draft Law Would Strengthen China's Export Control Powers
China is planning to strengthen its export controls through a new law that may be implemented this year, according to a Sept. 16 Lexology post from AnJie Law Firm.
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The law would grant China “significant investigative powers,” the post said, such as entering companies’ premises to investigate export control violations, reviewing documents, inspecting shipments, seizing assets and freezing bank accounts of violators. The law would introduce new penalties for export violations, including fines of up to $45,000 (in U.S. dollars) on individual violators and company fines of “no more than 10 times the illegal business revenues,” the post said. Violators may be added to a national public database, which could lead to export control agencies denying their license applications for three years after the violation.
The law would bring China’s system in line with other export control regimes, including the U.S.’s system, and allow Beijing to retaliate against “any discriminatory export controls targeted at China,” the post said. The law also includes restrictions on military, nuclear and chemical exports and will further control transfers of “cross-border technical data relating to controlled items,” according to the post.