Expand technical exchanges with foreign countries on the basis of safeguarding national security

 Expand technical exchanges with foreign countries on the basis of safeguarding national security

The international practice of export technology management has become a negative practice. Cui Fan said that Chinas foreign trade laws and regulations system has been gradually established and improved based on the experience of developed countries and in accordance with its own actual situation.

Based on the 2008 edition of the catalogue, this adjustment involves 53 technical items: 9 prohibited or restricted items are deleted; 23 restricted items are added; 21 items of control points and technical parameters are modified.

Cui Fan said that developed countries with advanced science and technology frequently update their national lists to reflect the reality of new technology development. Since the revision of the catalogue in 2008, Chinas understanding of the overall national security concept has been continuously deepened, and technologies in many fields have also made rapid progress. It is of little significance to continue to prohibit or restrict some technologies. At the same time, some new technologies are constantly emerging. It is necessary to adjust the relevant catalogue according to the objective needs of the development of the situation.

This adjustment has been brewing for a long time. Cui Fan said that as early as 2018, relevant departments solicited opinions from the public on the revision and adjustment of the catalogue. After repeated deliberation, the adjustment was carried out in combination with the objective needs of the development of the current international situation.

It is understood that, in the next step, China will continue to reduce and adjust the export catalogue, and at the same time, it will greatly streamline the Chinas catalogue of import prohibited and restricted technologies to highlight the role of market regulation.

Only by adhering to the overall national security concept and opening technology to the outside world can we achieve stability and long-term development

What are the reasons for the decrease and increase of the catalogue this time?

Standardize the administration of technology export, promote scientific and technological progress and foreign economic and technological cooperation, and safeguard national economic security. Talking about the purpose of the adjustment, the head of the Department of service and trade of the Ministry of Commerce said so.

In Cui fans view, in recent years, Chinas technology import and export management system has been constantly improved, such as revising the regulations on the administration of technology import and export in 2011 and 2019, and strictly prohibiting compulsory technology transfer in laws and regulations such as foreign investment law and administrative license law. These measures promote the relevant systems to be more conducive to regulating and expanding technology import and export, and moving towards the establishment of a more free, convenient and transparent technology trade management system.

China does not support the so-called decoupling. Cui Fan said that, as put forward in the recently released opinions of the CPC Central Committee and the State Council on building a more perfect system and mechanism for market-oriented allocation of factors, we should support international cooperation in scientific and technological innovation and expand the opening up of the field of science and technology to the outside world. However, Cui fan also believes that technology trade is different from other ways of international economic and trade cooperation. New technologies are constantly emerging, and some cutting-edge technologies may have some impact on national security, social and public interests or public morality, so they need to be included in the catalogue management. Therefore, the list of relevant prohibitions and restrictions in the field of technology trade cannot be reduced but not increased like the negative list of foreign investment access.

In the current international political and economic situation, it is more necessary to have a bottom line thinking in expanding the opening up of the technological field. Cui fan believes that technology trade may have an impact on the security of politics, economy, national defense, culture, society, ecology, resources and other fields. Only by adhering to the overall national security concept can the opening up of technology field be stable and far-reaching.

What is the impact of this catalog adjustment and release on enterprises?

Cui Fan said that in recent years, some countries have taken measures to tighten the control of technology transfer, seriously affecting technology trade and related investment activities. Under such a background, the Chinese governments practice in this catalogue adjustment is commendable. In particular, the prohibited technology items are only reduced but not increased, and the restricted technical items are increased or decreased and adjusted. In addition, the government will continue to delete and adjust the catalogue in the future, and constantly launch technology trade facilitation measures. This fully reflects the continuous optimization of Chinas technology trade environment, which is good news for the long-term development of enterprises.

What should enterprises do after the catalog adjustment?

Technology export can be divided into three categories: freedom, restriction and prohibition. According to Cui fans analysis, according to the regulations, enterprises preparing to export restricted technologies shall fill in the application form of Chinas export restricted technologies and submit them to the provincial competent commercial authorities for application before conducting substantive negotiations with foreign countries; if the technologies belong to state secrets, they shall go through the confidentiality examination procedures in advance. If the application is approved, it can obtain the letter of intent for technology export license, apply for export credit, make insurance intention commitment, and carry out substantive negotiations with foreign countries, and then sign the technology export contract. After signing a technology export contract, it shall apply for a technology export license to the provincial competent commercial department. The technology export contract shall come into force on the date of issuance of the technology export license.

In addition, Cui fan pointed out that according to the regulations on the administration of technology import and export, as long as the technology may be transferred from China to overseas, whether it is the transfer of patent rights, patent application rights and technical secrets, or the transfer of technology from China to overseas through patent licensing, technical services and other means, it is subject to the relevant administrative regulations, measures and catalogues. For the violation of the regulations, the relevant management regulations and methods have stipulated strict legal liability.

Enterprises in the process of or preparing for technology trading shall perform declaration and action according to the situation according to the new catalogue

What is the impact of this catalog adjustment and release on some enterprises that are undertaking or considering technology export?

For technology exporters who have not completed the transaction at the time of the entry into force of the new catalogue, if they are ready to export restricted technologies in the adjusted catalogue, it is recommended to suspend the negotiation and trade procedures and complete the relevant application procedures. Cui Fan said.

Citing the recent public concern that byte hop may sell tiktoks US business, he said that as a rapidly growing innovative enterprise, byte hop has a number of cutting-edge technologies in artificial intelligence and other fields, and some technologies may involve the adjusted catalog. For example, under the item of information processing technology of computer service industry with export restriction, the newly added Article 21 on personalized information push service technology based on data analysis and Article 18 on artificial intelligence interactive interface technology and other control points may involve the companys technology.

If the byte hopping program exports related technology, the licensing process should be performed. Cui Fan said that the rapid development of byte skipping international business relies on its strong domestic technical support. It continuously provides overseas companies with the latest core algorithm services, which is a typical export of technical services. If its international business is to continue to operate smoothly, no matter who its new owner and operator is, it is likely to need to transfer software code or its right of use from China to overseas, and may also need to provide technical services from China to overseas.

Therefore, it is suggested that byte skipping carefully study the adjusted catalog, seriously and carefully consider whether it is necessary to suspend substantive negotiations on relevant transactions, perform the statutory declaration procedures, and then take further actions as appropriate. Cui Fan said.

Source: responsible editor of Xinhuanet: Qiao JunJing_ NBJ11279