China Proposes Expanded Technology Export Restrictions and Announces New Export Control Measures on Dual-Use Items

Scope of the Proposed Amendments
The proposal covers 23 AI technologies, five biomedical technologies and 12 photovoltaic technologies. Of these, 14 would be prohibited from export and 26 would be restricted.

Examples identified by MOFCOM include proposed prohibitions on AI-driven malicious-code generation and mutation technologies, certain proprietary cell and gene therapy process platforms, and perovskite and tandem solar cell module production technologies. Proposed restrictions include AI-assisted vulnerability discovery, certain novel target discovery and validation technologies for universal cell and gene therapies and polysilicon engineering technologies with annual capacity of at least 30,000 metric tons per production line. Applicability would depend on the relevant technical criteria and exclusions, such as the exclusion for technologies already in the public domain and the de minimis exclusion for large models trained on limited amounts of important data. MOFCOM has also confirmed that products manufactured using the listed technologies fall outside the scope of the controls.

Key Sector Considerations

AI: Scope

- Large models trained on China’s “core data” and then provided as a service would be prohibited from export, and those trained on “important data” and then provided as a service would be restricted. The important-data exclusion applies where only a de minimis amount (no more than 0.1%) data is used where such data cannot substantively enhance the model’s core technology R&D capabilities in the relevant data domain, safeguards such as desensitization and cleaning are taken and the important data is not reproduced in outputs; a separate exclusion applies where the data is lawfully publicly available.

- Core large-model technologies, including weights, key checkpoints, source code and architecture, as well as training-optimization and inference-acceleration techniques, would also be restricted where a model reaches 1026 floating-point operations of compute, 2 trillion parameters, or a “globally leading” capability level, defined as a top-10 global ranking at the time of export in public evaluations by mainstream assessment bodies or large industry platforms, including evaluations of specialized business capabilities. This last criterion could reach developers of specialized or vertical models that fall well below the compute and parameter thresholds.

- Other proposed prohibitions cover specified information-countermeasure technologies capable of attacking highly sensitive systems or circumventing national security defenses, high-performance agents designed or primarily used for critical information infrastructure, defense or core government applications and specified high-performance detection technologies designed or primarily used to address risks in China’s cross-border network-data transmission.

- Other proposed restrictions cover specified agent, AI-processing and memory-chip design, computing-cluster, vulnerability-discovery, detection, information-hiding, translation and voiceprint-recognition technologies, subject to the applicable technical criteria and use limitations.

AI: Deployment and Open Source

- According to MOFCOM, the key question is whether restricted technology is transferred from China to an overseas location. Overseas localized deployment of restricted technology would constitute a technology export that is subject to export licensing requirements, although deployment on a company’s own overseas cloud or in similarly lower-risk settings could benefit from automatic licensing.

- By contrast, using restricted large models to provide APIs access, apps or websites interaction, SaaS applications or lightweight on-device deployment would fall outside the scope of large-model technology export management. However, if a company first transfers restricted model technology from China to overseas servers to provide those services, that transfer would still need to be assessed under the technology export rules. The service exclusion applies to restricted large models and should not be assumed to cover prohibited technologies, including large models trained on China’s core data and subsequently used to provide services.

- AI technologies already in the public domain through open-source releases, academic publications or similar means would be excluded. Open-sourcing restricted AI technology going forward would itself be treated as a technology export, although it would be eligible for automatic licensing, which MOFCOM describes as essentially allowing export upon filing. The same treatment would apply to overseas computing centers built and operated by Chinese enterprises themselves, overseas chip tape-out and fabrication, joint R&D using overseas resources and participation in international standard-setting. These facilitation measures are tied to the restricted categories and do not appear to extend to prohibited technologies. These proposed licensing arrangements remain subject to the final rules and are distinct from the interim registration requirements already in effect.

- Biomedicine: Treatment would vary by technology and transaction structure. Pathogenic microorganism technologies, including gain-of-function and directed passage techniques, would be prohibited from export. For proprietary cell and gene therapy and siRNA technology platforms, only transfers of ownership would be prohibited; licensing and outsourced R&D or manufacturing arrangements that do not transfer ownership would be excluded. Technologies necessary for collaborations or business-development transactions involving specific drug candidates would also be excluded, and “platforms” would not include development technologies for a single drug product. Licensing of certain target discovery and validation technologies, as well as exports for public health emergencies, humanitarian relief and joint R&D using overseas resources, could qualify for automatic licensing.

- Photovoltaics: The proposed scope also covers specified key equipment, but according to MOFCOM, only where the equipment embodies technology meeting the control thresholds; unlisted photovoltaic equipment would generally not be covered, and below the thresholds could still be exported freely. Overseas production-line projects are particularly relevant: MOFCOM has stated that exporters exporting, installing, commissioning, improving or upgrading production lines involving controlled technologies must obtain a technology export license and complete foreign exchange, banking, tax and customs procedures on the basis of that license.

Immediate Registration Requirements
Under Articles 18 and 20 of the Foreign Trade Law, until the revised Catalogue takes effect, exporters must register covered technology exports through MOFCOM’s online platform before export. Exporters are responsible for determining whether a proposed export falls within the interim registration scope. Covered transactions include:

• Transfers of technology ownership to an overseas party;
• Licensing domestic technology for overseas use;
• Changes under which the owner or actual controller of domestic technology becomes an overseas party; and
• Other circumstances specified by MOFCOM.

Exports of photovoltaic key and core equipment falling within the scope of the measures must also be registered. Registration principally requires information on the exporter and technology recipient, destination, technology and intended use and anticipated export value. The express inclusion of unfinished exports means businesses should assess ongoing transactions promptly. Companies encountering difficulties with registration may consult MOFCOM and the Ministry of Science and Technology. 

Practical Implications
Companies and investors should review pending technology transfers, licensing arrangements, overseas deployments and manufacturing projects against the proposed scope. AI developers should also audit training data for important or core data, assess exposure under the global-ranking criterion and consider the timing of planned open-source releases. Cross-border acquisitions and restructurings also warrant attention where they could change the ownership or actual control of covered domestic technology. For affected transactions, parties should consider registration responsibilities, delivery and closing schedules and appropriate contractual conditions. MOFCOM has characterized the revision as routine Catalogue maintenance not directed at any particular country, region or entity, and has indicated that the Catalogue will be adjusted dynamically, with technologies that are no longer advanced removed in a timely manner. Businesses may also use the consultation period to seek clarification on technical thresholds, changes in control, existing contractual obligations and eligibility for facilitation measures. Immediate compliance planning should separately address the interim registration regime already in effect, the proposed prohibitions and restrictions that remain subject to finalization and any other export licensing requirements applicable under existing law.

Additional Export Control Measures on Dual-Use Items 
Separately, on October 19, 2026, MOFCOM and the relevant authorities issued four further export control announcements.

Announcement No. 49 revises controls on specified drones, components, software and technologies, while allowing registration-based export certificates for certain drone exports and qualifying exhibition shipments. Announcement No. 50 introduces controls on tunnel-boring machines, specified walking excavators and high-altitude shotcrete machines and related items: exports to sensitive countries and regions having disputes with China require licenses, while exports to other destinations may use registration-based certificates, subject to restrictions on onward transfers. Announcement No. 51 adds licensing requirements for specified dredge pumps and key components, dragheads and cutterheads. These three announcements supplement or amend entries in China’s existing Dual-Use Items Export Control List and take effect on November 18, 2026, when the List will be updated accordingly.

Announcement No. 52, effective immediately, revises customs inquiry and technical-identification procedures, requiring exporters to respond within seven working days and generally setting separate 15-working-day periods for customs assessment or referral and MOFCOM identification, subject to exclusions and exceptions; unrelated goods under the same declaration may be cleared separately with customs approval.

Looking Ahead
Taken together, these recent developments signal China’s broader, more differentiated controls on technology transfers and dual-use exports, with implications for multinational companies’ cross-border transactions and operations. Businesses should promptly assess pending activities against requirements already in effect, prepare for the new dual-use controls and monitor finalization of the proposed technology restrictions. Early classification reviews, assessment of available exclusions and facilitation measures and appropriate contractual safeguards can help manage compliance risks and potential delays. We are closely monitoring these developments and welcome any questions about their potential implications for your China-related business.