The authorities of the PRC have announced that they will impose export restrictions on supplies of goods, which can be used in the military industry, on December 1. It occurred after the US had announced sanctions against dozens of Chinese companies for supplying Russia with such commodities, including components for drones.
The State Council of the PRC issued regulations for the purpose of safeguarding national security and interests, non-proliferation and other international commitments, and strengthening and standardizing export restrictions on dual-use items. According to the State Council of the PRC, the new requirements regulate restrictions and licensing procedures for the overseas supply of dual-use goods, enhancing military capabilities. A list of restricted items must be compiled, and exporters will have to disclose the recipients of the products and their intended use.
The US accuses the PRC of increasing the potential of the Russian war machine, stating that, although it does not provide weapons, it supplies equipment and components, which are used in the production of military equipment. Moreover, the PRC and Hong Kong have become transit points for the transportation of Western semiconductors to Russia, which are necessary for the production of missiles and other types of weapons. Russia has been producing long-range strike drones “Harpy”, using engines and components from China, since 2023. Having sanctioned two more Chinese companies for helping build the drones, the US Department of the Treasury made the following statement, “Designed by experts based in China, Harpy is manufactured in factories in China in cooperation with Russian defense firms.”
Nevertheless, Beijing denies any help for Russia. Spokeswoman of the Chinese Ministry of Foreign Affairs Mao Ning said the following at a press briefing on Friday, “China has never supplied weapons to Russia or Ukraine and strictly controls the export of dual-use items, including drones.”
Managing director of China Market Research Group Benjamin Cavender commented on China’s new rules, “Given the role drones have played in recent conflicts, materials and technologies that could be used in the aerospace industry could be among the first batch of items to be placed on the export restriction list.” By adopting them, Beijing is trying to show that it “follows the same rules as other countries when it comes to regulating dual-use trade,” he added.
Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis, is more skeptical about the prospects for the new rules. According to her, deliveries to Russia will most likely be exempt from export restrictions. In July, China already announced a ban on the export of all civilian drones that could be used for military purposes from September 1. This happened after then-Ukrainian Minister of Foreign Affairs Dmytro Kuleba had visited Beijing and asked not to assist Moscow in circumventing sanctions. By that time, some restrictions on the sale of drones, engines, and infrared equipment for them had already been in effect for a year. Along with drones, such drone-mounted components as lasers for infrared target detection and high-precision inertial measurement equipment were also added to the new export control list in the summer.
Taking into account the policy of the PRC towards dual-use goods exports to Russia, it is crucial for the USA and the EU to continue targeting the loopholes used to circumvent existing restrictions and carry on exerting pressure on Chinese authorities to prevent Russia from obtaining products needed for the production of military equipment.
