China Releases 'Export Control White Paper'... Justifying Export Controls

Chinese State Council Includes Plans and Actions to Safeguard National Security in White Paper
China Likely to Use Retaliation Against US Containment...Concerns Over South Korea Becoming a Victim of US-China Conflict

[Asia Economy Beijing=Special Correspondent Jo Young-shin] As resource weaponization emerges as the world's biggest issue, the Chinese State Council has published a 'White Paper on Export Controls.' This is the first time Chinese authorities have released a white paper related to export controls. There are concerns that South Korea, which depends overwhelmingly on China for 1,850 raw materials, could fall within the scope of China's ability to ban overseas exports of core technologies on national security grounds.

[Image source=Yonhap News]

According to state-run media such as Xinhua News Agency and People's Daily on the 30th, the State Council Information Office of China announced the white paper on export controls the day before. The white paper contains China's vision and practical plans to pursue world peace and development and to safeguard national and global security. The white paper, which is about 9,000 characters long, includes China's basic stance on export controls, improvements to export control laws and management systems, continuous modernization of the export control system, and active promotion of international exchanges and cooperation. This white paper is interpreted as a follow-up measure to justify and legitimize the 'Export Control Law' passed by the National People's Congress (NPC) in October last year.

This white paper was released amid the U.S. concretizing its China containment framework through the Quad, AUKUS, and the Indo-Pacific Economic Framework (IPEF). In fact, Chinese authorities stated in the white paper that the global security system and order are under threat, and China will strengthen export control order through the establishment of legal systems. This implies that if the Western camp, including the U.S., pressures China's economy through trade and supply chains in solidarity, China will use export controls as a countermeasure. It also contains the meaning that export controls could be used as a retaliatory card depending on the situation.

Chinese authorities define export controls as measures to prohibit or restrict the export of goods, technologies, and services related to national security, military supplies, nuclear (atomic) energy, and prevention of the proliferation of weapons of mass destruction, explaining that such actions are internationally accepted practices.

The Ministry of Commerce of China explained the background of the white paper by stating, "There are occurrences of false and fabricated statements infringing on the legitimate rights and interests of developing countries (China)." It also added that repeated sanctions and regulations against China, involving the use of state power to interfere with normal trade and market transactions, are a reality. The white paper openly targets the Western camp, including the U.S.

Some express growing concerns that South Korea, which has large trade volumes with China, could inadvertently become a victim of the U.S.-China conflict. Although the white paper does not specifically mention export control items, it is expected that items with high global market dominance such as raw materials, raw substances, and materials will all be subject to regulation. Currently, the dominant view is that rare earth elements will be the first regulated items.

Kang In-soo, a professor in the Department of Economics at Sookmyung Women's University, said, "On the surface, it is about strengthening management of major strategic materials and raw materials including rare earths, but it is actually a legal basis for retaliation against the U.S. and others who have imposed export controls on China. Since South Korea is highly dependent on China, it is always at risk of export controls."

Export Controls May Target Core Materials Including Rare Earths

So far, China has only taken symbolic measures in response to U.S. sanctions against its companies and diplomatic officials. Since export controls on core materials necessary for advanced industries such as rare earths would cause enormous damage to the global economy, the publication of this white paper by Chinese authorities is expected to have significant repercussions. Even during the intense Cold War era (U.S. and Soviet Union), there was an unwritten rule: energy and food were not touched. Both sides refrained from infringing on matters related to their citizens' livelihoods.

Although the white paper does not mention specific export control items, it is highly likely to include materials and raw substances indispensable to advanced industries such as rare earths. Materials and raw substances necessary for advanced industries are akin to food for survival.

Some in Beijing interpret this white paper as a warning to the U.S., implying that there is a line that must not be crossed and that the U.S. should not cross that line.

Guo Xiaobing, a researcher at the China Institute of Contemporary International Relations, explained regarding the white paper's publication, "China's export controls will reduce security threats, prevent conflicts, and ease tensions between the U.S. and China."

Song Wei, a researcher at the International Trade and Economic Cooperation Institute under the Ministry of Commerce of China, evaluated, "With the publication of the white paper, the legal system for export management and controls has been completed. China now has stronger options to safeguard its national interests and benefits." He added that the export control white paper will become the foundation of China's export control system going forward.

China's 'Export Control' Card Tightens Against Pressuring U.S.

In the 'Interim National Security Strategy Guidelines' announced in March, the U.S. defined China as the only competitor with the potential to continuously challenge it. Subsequently, the U.S. elevated the Quad security consultative group (U.S., India, Australia, Japan) to a summit level to contain China. It then launched the AUKUS alliance (U.S., UK, Australia). Including the existing Five Eyes (U.S., UK, Australia, Canada, New Zealand) and NATO, there are four military alliances aimed at containing China.

The U.S. is also planning the Indo-Pacific Economic Framework (IPEF), an economic alliance. President Joe Biden mentioned a comprehensive economic cooperation body for the Indo-Pacific region's shared prosperity at the East Asia Summit last October. IPEF aims to strengthen regional economic cooperation by setting common principles and standards across broad areas such as trade, supply chains, digital economy, decarbonization, and infrastructure cooperation. IPEF is effectively an economic coalition to contain China.

The emergence of economic alliances following U.S.-led security alliances is likely to become a means to sufficiently pressure China. It cannot be ruled out that China will respond with backlash or corresponding retaliation in some form.

This content was produced with the assistance of AI translation services.