Beijing : China’s Ministry of Commerce (MOFCOM) has defended its recent decision to impose export control measures on certain rare earth materials, describing the step as a lawful and responsible move to strengthen oversight amid growing global instability.
Responding to media questions, a MOFCOM spokesperson said the export controls, jointly announced with the General Administration of Customs on October 9, are part of efforts to refine China’s export management system and fulfill international non-proliferation commitments.
“These are legitimate measures taken in accordance with laws and regulations,” the spokesperson said. “In a world of turmoil and frequent military conflicts, medium and heavy rare earths have significant military uses. As a responsible major country, China implements export controls to safeguard world peace and regional stability.”
The ministry emphasized that the restrictions are not export bans and that qualified exporters can still obtain licenses for legitimate transactions. Beijing had informed relevant countries in advance through bilateral export control dialogues, it added.
A: China has taken note of the situation. On October 9, China released export control measures on rare earths and related items, which are normal actions taken by the Chinese government in accordance with laws and regulations to refine its own export control system. As a responsible major country, China always firmly safeguards its national security and international common security, always takes a just and reasonable principled position and implements export control measures in a prudential and moderate manner. The U.S. remarks reflect textbook “double standard”. For a long time, the U.S. has been overstretching the concept of national security, abusing export control, taking discriminatory actions against China, and imposing unilateral long-arm jurisdiction measures on various products including semiconductor equipment and chips. The U.S. Commerce Control List (CCL) covers over 3000 items, whereas China’s Export Control List of Dual-use Items only cover about 900. The U.S. has long imposed the ‘de minimis’ rule for export controls, with a lowest threshold of 0%. These measures of U.S. side have seriously harmed the legitimate and lawful rights and interests of companies, severely disrupted the international economic and trade order, and gravely undermined the security and stability of global industrial and supply chains.
Particularly since the China-U.S. economic and trade talks in Madrid in September, the U.S., in just 20 days, has introduced a string of new restrictive measures targeting China. It has put multiple Chinese entities on the Entity List and Special Designated National List; arbitrarily expanded the scope of control over businesses with the Affiliates Rule that affects thousands of Chinese companies; and persisted with the implementation of Section 301 measures targeting China’s maritime, logistics and shipbuilding industries in disregard of China’s concerns and goodwill. The U.S. actions have severely harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks, and China is resolutely opposed to them.
Willful threats of high tariffs are not the right way to get along with China. China’s position on the trade war is consistent: we do not want it, but we are not afraid of it. China urges the U.S. to promptly correct its wrong practices, adhere to the important consensuses of the phone calls between the two heads of state, protect the hard-won outcomes of consultations, continue to use the China-U.S. economic and trade consultation mechanism, and address respective concerns and properly manage differences through dialogues and on the basis of mutual respect and equal-footed consultation, so as to ensure the stable, sound and sustainable development of the China-U.S. economic and trade relationship. If the U.S. insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.
- Q: The U.S. will impose port fees on related Chinese vessels on October 14. We have noted that China has announced countermeasures in response. What is China’s comment?
A: On April 17, the USTR announced the final action of Section 301 investigation into China’s maritime, logistics and shipbuilding sectors and will impose port fees on related Chinese vessels from October 14. The U.S. practice severely violates the WTO rules and breaches the principle of equality and mutual benefit of the China-U.S. Maritime Transport Agreement, and is a typical act of unilateralism. China has repeatedly expressed its strong dissatisfaction and firm opposition.
Since the economic and trade talks in London, China has engaged in consultations and communications with the U.S. on the measures mentioned above, provided a written reply to the groundless accusations against China in the Section 301 investigation report, and made recommendations of potential bilateral cooperation in related industries. However, the U.S. has shown a negative attitude and willfully persists in implementing those measures, issuing a notice on October 3 setting out the specific requirements for imposing fees on Chinese vessels. In order to safeguard its legitimate and lawful rights and interests, China has to take countermeasures and decides to charge special port fees on U.S.-linked vessels in accordance with the Regulations of the People’s Republic of China on International Ocean Shipping and other laws and regulations. China’s countermeasures are necessary acts of passive defense and are aimed at maintaining the legitimate rights and interests of Chinese industries and enterprises, as well as the level playing-field of the international shipping and shipbuilding markets.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
