China imposes strict export controls on dual-use items to US to protect national security

 


Relevant enterprises please note, the following materials exported to the United States will be banned or strictly restricted:

  1. The export of dual-use items to  military users or for military purposes  is restricted in the United States;
  2. In principle, exports of dual-use items such as  gallium, germanium, antimony, and superhard materials  will not be permitted to enter the United States; and
  3. Dual-use export  graphite items  Goods imported into the United States will be subjected to end-user and end-use review.

The declaration emphasised that any organisation or individual from any country or region found to be violating the above rules by transferring or supplying dual-use items produced from the People's Republic of China to organisations or individuals in the US shall be held legally accountable.

CIRS Warm Reminder

This export control policy may cause supply chain costs in some industries in the US to increase, for example, gallium and germanium are key elements in semiconductor manufacturing, which are widely used in integrated circuits, microprocessors, and sensors. Export control may cause production costs in the US semiconductor industry to increase. On the other hand, this policy poses challenges for related enterprises within China in terms of supply chain management, cost control, market competitiveness, and legal compliance. Enterprises need to re-evaluate their supply chain strategies, find alternative materials or markets, and strengthen internal compliance management to deal with the impacts of policy changes.

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