Export Control Series (II) List of Attention and Control for Export Control of Dual Use Items
2025 05/16
Recently, the official website of the Ministry of Commerce announced that from January to April 2025, the Security and Control Bureau of the Ministry of Commerce has issued four announcements, including Announcement No. 1, No. 13, No. 21, and No. 22 of 2025 (hereinafter referred to as the "Four Announcements"). These four announcements list 71 US entities on the export control list and prohibit export operators from exporting dual-use items to these 71 US entities. Relevant export activities that are currently underway should be immediately stopped. From the above control measures, it can be seen that once foreign entities are included in the control list, they may no longer be able to conduct dual-use item transactions with Chinese export operators. So, under what circumstances will foreign entities be included in the control list? What is the difference and connection between the control list and the attention list that are both control measures?
In terms of the control list, Article 28 of the Regulations on the Export Control of Dual Use Items stipulates five situations in which importers and end-users are included in the control list, including (1) violation of end-user or end use management requirements; (2) May pose a threat to national security and interests; (3) Using dual-use items for terrorist purposes; (4) Using dual-use items for the design, development, production, or use of weapons of mass destruction and their means of delivery; (5) Measures such as prohibition or restriction of transactions and cooperation have been taken by relevant national departments in accordance with the law. Article 29 stipulates that importers and end-users included in the control list may take one or more of the following measures: (1) prohibit the trading of dual-use items; (2) Restricting transactions related to dual-use items; (3) Order to suspend the export of dual-use items; (4) Other necessary measures.
As for the list of concerns, Article 26 of the Regulations on the Export Control of Dual use Items stipulates that if importers or end-users fail to cooperate with verification and provide relevant supporting materials within the prescribed period, resulting in the inability to verify the end-users and end uses of dual-use items, the competent commerce department of the State Council may include the relevant importers or end-users in the list of concerns. Export operators exporting dual-use items to importers and end-users listed on the watchlist shall not apply for general licenses or obtain export certificates through registration and information filling; When applying for a single license, a risk assessment report should be submitted for importers and end-users listed on the attention list, and a commitment should be made to comply with export control laws, regulations, and relevant requirements. The license review period is not limited by the time limit stipulated in the regulations.
It can be seen that both the attention list and the control list are established by countries to safeguard national security and interests, fulfill international obligations such as non-proliferation, etc. In the field of dual-use item export control, the attention list is often a pre regulatory measure. If the objects on the attention list continue to violate relevant regulations or have situations that may endanger national security and interests, they may be included in the control list.
But there are certain differences between the two in terms of regulatory measures, disclosure and transparency, and degree of impact:
(1) From the perspective of regulatory measures. Importers and end-users listed on the watchlist are mainly restricted by trade facilitation measures (such as licensing facilitation measures), but can still engage in transactions; Importers and end-users included in the control list have stricter management measures, such as prohibiting or restricting dual-use item transactions, suspending ongoing transactions, etc.
(2) In terms of disclosure and transparency. The watchlist may only inform relevant enterprises or institutions within a specific scope to remind them to strengthen their attention and risk assessment in trading and other activities. The control list is announced by relevant departments through public announcements, such as the Ministry of Commerce's announcement mentioned at the beginning, which has high transparency.
(3) In terms of the degree of impact. The impact of being included in the attention list is relatively small, mainly as a risk warning and alert, aimed at promoting their own behavior regulation and cooperation with regulatory requirements; However, being included in the control list has a significant impact, severely restricting its related economic activities and transactions, resulting in damage to its international business reputation, and may also cause economic losses.
In terms of the control list, Article 28 of the Regulations on the Export Control of Dual Use Items stipulates five situations in which importers and end-users are included in the control list, including (1) violation of end-user or end use management requirements; (2) May pose a threat to national security and interests; (3) Using dual-use items for terrorist purposes; (4) Using dual-use items for the design, development, production, or use of weapons of mass destruction and their means of delivery; (5) Measures such as prohibition or restriction of transactions and cooperation have been taken by relevant national departments in accordance with the law. Article 29 stipulates that importers and end-users included in the control list may take one or more of the following measures: (1) prohibit the trading of dual-use items; (2) Restricting transactions related to dual-use items; (3) Order to suspend the export of dual-use items; (4) Other necessary measures.
As for the list of concerns, Article 26 of the Regulations on the Export Control of Dual use Items stipulates that if importers or end-users fail to cooperate with verification and provide relevant supporting materials within the prescribed period, resulting in the inability to verify the end-users and end uses of dual-use items, the competent commerce department of the State Council may include the relevant importers or end-users in the list of concerns. Export operators exporting dual-use items to importers and end-users listed on the watchlist shall not apply for general licenses or obtain export certificates through registration and information filling; When applying for a single license, a risk assessment report should be submitted for importers and end-users listed on the attention list, and a commitment should be made to comply with export control laws, regulations, and relevant requirements. The license review period is not limited by the time limit stipulated in the regulations.
It can be seen that both the attention list and the control list are established by countries to safeguard national security and interests, fulfill international obligations such as non-proliferation, etc. In the field of dual-use item export control, the attention list is often a pre regulatory measure. If the objects on the attention list continue to violate relevant regulations or have situations that may endanger national security and interests, they may be included in the control list.
But there are certain differences between the two in terms of regulatory measures, disclosure and transparency, and degree of impact:
(1) From the perspective of regulatory measures. Importers and end-users listed on the watchlist are mainly restricted by trade facilitation measures (such as licensing facilitation measures), but can still engage in transactions; Importers and end-users included in the control list have stricter management measures, such as prohibiting or restricting dual-use item transactions, suspending ongoing transactions, etc.
(2) In terms of disclosure and transparency. The watchlist may only inform relevant enterprises or institutions within a specific scope to remind them to strengthen their attention and risk assessment in trading and other activities. The control list is announced by relevant departments through public announcements, such as the Ministry of Commerce's announcement mentioned at the beginning, which has high transparency.
(3) In terms of the degree of impact. The impact of being included in the attention list is relatively small, mainly as a risk warning and alert, aimed at promoting their own behavior regulation and cooperation with regulatory requirements; However, being included in the control list has a significant impact, severely restricting its related economic activities and transactions, resulting in damage to its international business reputation, and may also cause economic losses.
