IN FOCUS
By Keerthana Nambiar 
China’s White Paper on Export Controls

On 29 December, China issued its first white paper on export controls providing details of China’s current policies and system. The document titled ‘China’s export Controls’ was released by the State council information Office. The white paper focused on China’s institution and practices in export controls along with its commitments to safeguard world peace, development and security at domestic and international levels. The document consists of four sections: China's basic position on export control, continuous improvement to the legal and regulatory system for export control, modernization of the export control system, and international exchanges and cooperation.

Takeaways:
First, China claims to pursue a holistic approach to national and security and uphold the values and norms of the international system.
The white paper highlights Beijing’s commitment to stand by the international system under the UN and international order. The document states that China is pursuing to maintain a “holistic approach to national security”. The ministry tries to convince China’s interests in a “common, comprehensive and sustainable outlook on global security”. China has established regulations for the Export Control Law and is making efforts to improve them. The white paper also focuses on China’s belief in international cooperation and multilateral mechanisms to create win-win cooperation. It further explains its opposition to abuse export control measures, imposed restrictions, double standards and abuse of multilateral mechanisms.

Second, China plans to commit itself in improving the legal system for an efficient export control regime.
In this section, China describes its motive to establish and improvise a legal framework for export controls which focuses on improving China’s domestic market under the State government. The Ministry points out a guaranteed sound working mechanism in multiple departments of the State council. It describes regulatory systems used by various sectors export controls which ensures a “solid institutional guarantee” with clear assigned roles among departments.

Third, China looks forward to modernizing its export control system with technological support.
This section of the document focuses on inducing scientific environment in export control laws stressing on China’s adoption of internationally accepted practices in export controls. The white paper identifies improving license management, strengthening enforcement capability in export control, developing export control compliance systems to guide the export control system and China’s compliance with international obligations in prohibiting nuclear, biological and chemical weapons of mass destruction.

Fourth, China’s aim is to prioritize international exchanges and cooperation to ensure a multilateral export control mechanism.
The document discusses China prioritizing international exchanges and cooperation, conducting bilateral exchanges and cooperation and strengthening the multilateral dialogue and consultation. It stresses on China’s willingness to work with the international community and mentions the importance of bilateral exchanges in increasing mutual understanding and cooperation between China and other countries.

Outlook:
China’s white paper on export controls tries to fully paint its policies, positions and institutional setup on export controls. The Ministry repeatedly ensures that China’s interests align with an international organizations and is working towards peace and development through international cooperation. The claims made by China in the document can be easily challenged with the decisions made by the State Council.

This paper comes in a time where China is facing major friction with US with Washington imposing innumerous sanctions on Chinese companies stating national security reasons. In the document, China without fail mentions its opposition against the abuse of export controls and double standards in trade clearly indicating US’ recent choices. Since the last few months, China has been releasing white papers on the demography of Xinjiang region, US democracy, biodiversity, bilateral relations between China and Africa and many more. The white paper has become a method of responding to any allegations, accusations from the West providing justification from the State Council’s side to the world with a banner of peace and development.

References:
“Full Text: China's Export Controls,” The State Council The People’s Republic of China, 29 December 2021

IN BRIEF
By Avishka Ashok and Dincy Adlakha

INTERNAL
Local government passes demolition orders for Evergande group’s construction
On 3 January, South China Morning Post announced that an order had been passed to bring down the buildings that had been constructed with a fraudulent permit in the Hainan province. The order revoking the illegal permits was passed on 30 December 2021 by the Danzhou Municipal People’s government. The development has caused more worries for the Evergrande group who are currently in the midst of a financial crisis. As per the order, 39 buildings will be demolished in the next ten days in the southern tropical island of the province. (“Evergrande creditors have more cause for concern amid reports some of its Hainan developments need to be demolished,” South China Morning Post, 03 January 2022)

Citizen News decides to cease operations in Hong Kong
On 3 January, an independent online publication Citizen News explained that its decision to shut operations was triggered by the police raid on Stand News and the arrest of its staff members. On 2 January, Citizen News made its decision to stop its operations public. The independent publication further clarified that the media safety in the city was declining rapidly and a drastic step was necessary to ensure the safety of its staff members. The chief writer at Citizen News said: “The decision was made within a short period of time. The trigger point was the fate of Stand News. We could not rule out that, we might be exposed to some risks.” (“Hong Kong's Citizen News says closure triggered by Stand News collapse,” Reuters, 3 January 2022; “Hong Kong independent portal Citizen News says to shut,” Reuters, 3 January 2022)

Taiwan purchases liquor shipment bound for China
On 3 January, a liquor firm owned by the Taiwanese government announced that it would purchase a shipment of 20,400 bottles of dark rum, manufactured in Lithuania. The shipment was bound for mainland China but was informed that it would be blocked by Chinese customs due to the diplomatic tensions between China and Lithuania. The Taiwanese company made the decision to purchase the shipment in an attempt to assist the Lithuanian MV Group Production. (“Taiwanese firm buys Lithuanian rum destined for mainland China amid diplomatic row,” South China Morning Post, 4 January 2022)

REGIONAL
China may witness difficulties in acquiring coal from Indonesia in the coming months
On 3 January, Global Times reported that China may experience a minor change in its coal availability due to the month-long export ban imposed by Indonesia. Indonesia, China’s largest import source of thermal coal, is currently experiencing a possibility of energy blackout in the coming months due to a domestic shortage of coal to power their plants. Chinese experts believe that the changes would not impact the economy heavily since the country has managed to expand and stabilize its domestic production of coal. However, Indonesia’s export ban may impact other countries more severely as it is a major exporter of thermal coal. (“China’s coal supply faces limited impact from Indonesian export ban,” Global Times, 3 January 2022)

China-Laos railway project benefits regional economy and tourism
On 3 January, the China-Laos railway marked the first month of its successful operation. The China State Railway Group Co observed that the railway project had immensely benefitted the two countries and said: “The China-Laos Railway has accelerated the formation of a new logistics channel between China and members of the Association of Southeast Asian Nations (ASEAN), with the railway transporting 670,000 passengers and 170,000 tons of goods in the first month.” The operation of the China-Laos railway initiative had helped boost tourism and also improved the standards of living of the settlements along the railway line. (“China-Laos Railway forms new logistical channel from China to ASEAN,” Global Times, 3 January 2022)

INTERNATIONAL
UN Security Council permanent members issue a joint statement on nuclear warfare
On 3 January, China, France, Russia, the UK and the US passed a joint statement and advocated the prevention of nuclear war and avoiding more nuclear arms races. Local Chinese media outlets claimed that the country played a major role in leading the group of countries towards the important resolution. Chinese experts believe that the statement will be crucial in reassuring the international community on the state of international strategic security. The statement said: “We reiterate the validity of our previous statements on de-targeting, reaffirming that none of our nuclear weapons are targeted at each other or at any other State.” (“China leads in five-state joint statement on preventing nuclear war, arms race,” Global Times, 3 January 2022)