China is imposing export controls on more drones and machinery, as the world's second-biggest economy flexes its industrial muscles.
The measures announced by the Ministry of Commerce Monday will take effect from Nov 18. They expand curbs to include new types of drones — plus parts and technologies — as well as components of dredgers including mud pumps and cutterheads. Also added to the list are some types of tunnel boring machines, which hadn't previously been subject to export controls.
China's Commerce Ministry said the items have been officially classified as “having an obvious military-civil dual-use nature,” and that it has notified in advance countries with which Beijing has an export control dialogue.
It's the latest example of China upping the ante on export controls, as the manufacturing giant becomes an indispensable part of global supply chains and seeks leverage in tough negotiations with trade partners. Beijing has restricted sales of rare earths and last week proposed adding some artificial intelligence technologies to its list.
Boring machines can be used to construct underground tunnels for hardened military infrastructure. China accounts for some 70% of the global market in diggers, and is home to leading producers like China Railway Engineering Equipment Group Co Ltd, whose shield products are used in 36 countries including Denmark and France. Its top competitors include Germany's Herrenknecht AG.
Dredgers are useful for building naval facilities and China is also a major producer in that industry. Rivals in the market include Netherlands-based Royal IHC NA.
In a separate notice, the ministry also said Monday that will step up its scrutiny of exports to identify dual-use items, with immediate effect. That new procedure will require receipts as well as transport documents proving the flow of goods, and will apply to cross-border e-commerce, passenger luggage, mail, and express shipments.
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