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China's Export Control-related Bodies
In March 1998, after meetings of the 9th National People's Congress, the Chinese government initiated a major restructuring of its bureaucracy and especially its military industrial complex. These activities have had a profound effect on China's export control system. The reorganization effort has, in some cases, involved the abolition of entire government organs, such as the Ministry of Chemical Industry, and, in other cases, has involved the transfer of administrative and regulatory duties among agencies and commissions. These changes, in turn, have shifted the responsibility for export controls between various agencies in the Chinese bureaucracy.
Another significant change occurred when the Chinese government issued new export controls in 2002. These new controls detailed the organizations involved with export controls, and gave significant power to the then Ministry of Foreign Trade and Economic Cooperation (MOFTEC). In spring of 2003, MOFTEC went through a reorganization and was renamed Ministry of Commerce (MOFCOM).
The chart below lists the major Chinese government
organizations involved in export controls and their
relative responsibilities. Other specialized ministries
and organizations not listed also may play a
consultative role.
|
BODY |
ROLE IN EXPORT CONTROL |
State Council (China's cabinet) |
The recent progress in China's export controls has been linked to more focused efforts on the part of the State Council. This body sets overall export control policy, but does not involve itself in day-to-day licensing matters. The 'economic entity' within the State Council grants companies permission to export items, however licensing issues are only discussed within the State Council when there are issues of state security involved or when there is disagreement within the system.. The State Council has the authority to invoke catch all provisions and can add items to the existing control lists. |
Ministry of Commerce (MOFCOM), formerly Ministry of Foreign Trade and Economic Cooperation (MOFTEC) |
China's most recent export controls have given significant authority to the Ministry of Commerce (MOFCOM). MOFCOM is also responsible for issuing broad based trade laws governing China’s export controls such as the 1994 Foreign Trade Law. Within Commerce, the Department of Science and Technology (DST) has the primary export control authority. DST reviews and issue export licenses, and is responsible for all dual-use related exports. Science and Technology coordinates formal and informal interagency discussions about sensitive technology exports. (In the nuclear and chemical areas, the China Atomic Energy Agency and the CWC Implementation Office takes the lead in vetting export applications and then refer them to MOFCOM; COSTIND and the Central Military Commission take the lead in vetting military exports.) Other ministries, such as Agriculture, Health and Science and Technology also play a consultative role and are called upon by MOFCOM to advise on individual licenses. |
Ministry of Foreign Affairs (MFA) |
The MFA’s role in China’s arms control
and nonproliferation affairs has become much more formal in the past few years,
and this has augmented its influence in arms sales policymaking and export
control decisions. In September 1997, the MFA established an Arms Control and
Disarmament Department which is one of the principal government actors involved
in formulating, articulating and defending China’s arms export policies. This
Department has three divisions covering nuclear, chemical, and
missiles/conventional weapon issues; a fourth division covers the research needs
of the department. Officials from the MFA participate in decisions about China's
export control laws and policies, and do play some role in daily export control
decision-making.
In the past, the MFA was reportedly not well informed about China's sensitive exports and often found out about them after the fact. Yet, with the establishment of this new department and the promulgation of a formal licensing and approval process for sensitive technology exports, it is unlikely that the MFA would not be informed of a pending arms export assuming that the deal was officially authorized. |
China Atomic Energy Agency (CAEA) |
Following the government reorganization initiated in March 1998, the CAEA was separated from the China National Nuclear Corporation (CNNC) and placed under the control of the new COSTIND. In its new position, the CAEA functions as a administrative/ regulatory agency for China's nuclear industry and has primary vetting authority over China’s exports of nuclear equipment and technologies (not nuclear materials). Once the CAEA approves a license for a nuclear export then the license application is given to MOFCOM for additional review, approval and issuance. MOFCOM, not the CAEA, is responsible for vetting exports of dual-use nuclear items. |
Commission on Science, Technology, and Industry for National Defense (COSTIND) |
COSTIND was formally abolished and then
reconstituted under the State Council as part of the organizational reforms
announced at the National People's Congress in March 1998. COSTIND, which
used to oversee the defense industrial base and was headed by military
personnel, was “civilianized” under the reforms. The “new” COSTIND is headed by
civilian leaders and was formed by combining three parts of the bureaucracy: the
national defense departments of the Ministry of Finance and the State Planning
Commission and the administrative offices of the five defense industrial
ministries (aviation, aerospace, shipbuilding, nuclear, and ordnance.) The new
COSTIND appears to be tasked with implementing defense production directives and
continuing to oversee and enhance the civilian production output of the defense
plants. It appears as if COSTIND has become the administrative and regulatory
point of contact for China’s five defense industries
The new COSTIND has a prominent role in export control decisions covering military products. While COSTIND lost its arms control expertise to the GAD and thus its role in arms control and nonproliferation policy-making, it gained the administrative duties of China’s five defense industries. These offices will likely participate in inter-agency consultations about exports from China’s defense companies. For example, China’s nuclear export control law specifies that companies must first apply to the China Atomic Energy Agency as part of the authorization process for selling controlled nuclear equipment and technologies. COSTIND will probably not be the final word on exports of military products and related technologies but it may be the starting point for companies wanting to export such items. Currently, COSTIND houses two regulatory bodies, the China Atomic Energy Agency and the State Aerospace Bureau, which are involved in the reviewing export applications. The China Atomic Energy Agency is responsible for exports of nuclear equipment and technologies and the State Aerospace Bureau holds a similar function within the aerospace industry. In the past, COSTIND was directly responsible for China's nuclear related exports until 1985, but after 1985 its role became limited in deciding exports of civilian nuclear products; officials from the State Council, CMC, and COSTIND met regularly to discuss export policies |
| Chemical Weapons Convention Implementation Office (CWCIO) | The CWCIO reviews applications for exports of chemicals listed in the Chemical Weapons Convention. (Other chemical related items are vetted by MOFCOM) Applications for transfer of scheduled chemicals (i.e. items on the CWC schedule of chemicals) first go to the CWCIO and are then passed to MOFCOM for final licensing approval. CWCIO has ten staff members in Beijing, as well as a network of officials at the provincial and county levels who assist with implementation of the export control regulations. To assist in application vetting, the CWCIO maintains a hotline with MOFCOM, Customs, and the MFA. |
General Armaments Department (GAD) (Zong Zhuangbei Bu) |
The GAD was formed in April 1998 during the restructuring of
China’s military industrial complex initiated at the 9th National People's
Congress meeting. The GAD is currently under the control of the Central
Military Commission and has many of the responsibilities of the former COSTIND.
This new PLA general staff-level department draws together the uniformed
military from the former COSTIND with the General Staff Department’s Equipment
Directorate, as well as with other military equipment-related offices from other
parts of the General Staff system. The GAD’s main role is to oversee the
development, procurement, supply, maintenance and the life-cycle management of
the military’s weapons systems. The GAD was also tasked with overseeing the
PLA’s testing and training bases such as the Xichang satellite launch center.
The GAD also have a limited role in vetting some military related exports as well as voicing opinions in arms control negotiations affecting Chinese military capability. GAD officials also likely participate in interagency discussions about sensitive military related export licenses. The GAD houses the former COSTIND's arms control department which studies export controls, among other arms control issues. |
State Administration of Industry and Commerce |
While the SAIC was previously considered a key agency involved in China's export-related activities, this organization's involvement in the system has lessened since the release of the 2002 export controls. |
Central Military Commission (CMC) |
Senior officials from the CMC meet with State Council officials to discuss export policies, mainly those related to military exports; China has stated that “major” military exports and contracts must be examined and approved by the CMC and the State Council. The CMC does not play a role in vetting exports of nuclear or chemical materials, equipment or technologies. |
General Administration of Customs (GAC) |
The Customs Service (Haiguan Zongshu) is the enforcement bureau for export controls. It is responsible for inspecting exports before they leave China to ensure they have the appropriate export licenses and transit documents. Export Companies often first go to the GAC before applying for a license in order to determine if an item is controlled by China’s export control regulations. The GAC has a computer database listing controlled items. |
China National Nuclear Corporation (CNNC) |
As a result of the government
reorganization initiated in March 1998, the CNNC no longer has authority over
nuclear exports. Rather, the China Atomic Energy Agency, under the
new COSTIND, serves as a an administrative agency in which one of its main
responsibilities is to vet nuclear exports. In essence, all of CNNC’s authority
over nuclear exports now belongs to the CAEA. In the past, CNNC had direct responsibility for China's nuclear related exports. As the state holding corporation, CNNC approved nuclear exports from its affiliated companies by either a "ratification document" (pi wen) or a joint ratification document (lianhe pi wen), but not by an export license. |
Military Products Export Leading Group (Junpin Chukou Lingdao Xiaozu) |
The MPELG is no longer seen as a key player in the
export control system.
Interpretations of this organization differ. On one hand, according to Chinese sources, this “leading group” is composed of very senior government and party officials (e.g. China’s Vice Premiers) which occasionally discuss the most controversial arms sales and others sensitive exports. Given the high level nature of the group's participants, it only considers arms deals that are internally controversial and politically sensitive for China’s foreign relations. On the other hand, some Western scholars argue that this leading small group is an organization similar to the SACMPT but with a different name. The Military Products Export Leading Group, according to this interpretation, is an inter-ministerial coordinating body comprised of leaders from the CMC, PLA, COSTIND, MFA, and the former defense industry ministries. It was established in 1990 to discuss arms sales and sensitive exports, and to make decisions on disputed arms export issues. |
State Administrative Committee on Military Products Trade (SACMPT) |
Abolished in mid 1998, the SACMPT used
to be the main government organ responsible for overseeing exports of military
products and related technologies. It was principally tasked with drafting laws
and policies governing arms transfers. According to China’s 1995 white paper,
the SACMPT reported to both the State Council and the CMC and was comprised of
“leading personnel” from the MFA, COSTIND, the headquarters of the General
Staff, MOFTEC and “other relevant departments.” In this sense, the SACMPT
functioned as an interagency mechanism. The day-to-day administrative
responsibilities of the SACMPT were handled by the State Bureau of Military
Products Trade. Companies were required to register with the SACMPT and their
contracts and export license applications had to be approved before military
goods could be legally exported. The 1995 white paper explained that the SACMPT
only reviewed applications for “major military transfers” and would then
forwarded them to the State Council and the CMC for consideration.
It is not yet clear what agency or set of agencies will replace the SACMPT or the SBMPT. It is possible that the new COSTIND has assumed the responsibility for vetting exports of military products and sensitive technologies. |
State Petroleum and Chemical Industry Administration (formerly Ministry of Chemical Industry, MCI) |
Previously, an office within the State
Petroleum and Chemical Industry Administration was responsible for vetting
chemical exports. That authority has now moved to the CWC Implementation office
(for CWC related chemicals) and to MOFCOM (for dual-use chemicals and items.) It
was established in March 1998 following a reorganization of the Chinese
government which was initiated at the annual meeting of the National
People's Congress (NPC). This new office took over the export control
responsibilities of the MCI, which was abolished in March 1998.
Formerly, the MCI was responsible for regulating the import and export of chemicals, technologies, and equipment possibly applicable to the development of chemical weapons; business related to such imports and exports was handled by specialized enterprises designated by MCI and MOFTEC; MCI, MOFTEC, and the GAC take joint responsibility for examining and approving imports and exports, issuing licenses and making inspections of chemical weapons related items |
Updated 10/24/2003
This
material is produced independently for NTI by the James Martin Center for
Nonproliferation Studies at the Monterey Institute of International Studies and
does not necessarily reflect the opinions of and has not been independently
verified by NTI or its directors, officers, employees, agents. Copyright © 2007
by MIIS.
