China has revised the catalogue of technologies that are subject to export bans or restrictions, the Ministry of Commerce (MOFCOM) said on Friday.

The revised catalogue, released jointly by MOFCOM and the Ministry of Science and Technology, deleted four items prohibited from export, including microbial fertilizing and caffeine production technologies, MOFCOM said in an online statement.

The catalogue also removed five items subject to export restrictions, including Newcastle disease vaccine technology and information security firewall software technology.

A total of 23 items subject to export restrictions were added to the catalogue while technical parameters of 21 items were revised.

All technology transfers abroad, whether through trade, investment or other means, must strictly abide by relevant regulations on technology import and export of the country, the statement said.

The catalogue aims to standardize the administration of technology export, promote scientific and technological development, enhance economic and technological cooperation with other countries, and safeguard China’s economic security, MOFCOM said.

It is the first time since 2008 that the catalogue has been revised, MOFCOM said, adding that it is a common international practice to amend the catalogue as China’s science and technology rapidly develops and its industrial competitiveness rises.

While further adjusting the catalogue of technologies subject to export bans or restrictions, the two ministries will work to streamline the catalogue of technologies subject to import bans or restrictions, MOFCOM said.

China’s technology trade has seen steady and rapid development in recent years. In 2013, the contract value of China’s technology exports stood at 20 billion U.S. dollars, less than half of the import contract value. In 2019, the contract value of technology exports increased to 32.1 billion dollars, which was basically in line with the value of the import contracts, MOFCOM data showed.

Technology exports not only optimize China’s export structure, but also promote the industrial upgrading and economic development of relevant trading partners, said MOFCOM.

What does all this mean for TikTok?

“For technology exporters who have not completed transactions when the new catalogue takes effect, if they plan to export restricted technologies in the adjusted catalogue, they’d better suspend the negotiation and trade procedures before performing the application procedures,” according to Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing.

As a rapidly growing innovation-driven company, ByteDance boasts a number of cutting-edge technologies in artificial intelligence and other spheres, and some technologies may have a close bearing on the adjusted catalogue.

“For instance, the newly-added article 21 over ‘personalized information push service technology based on data analysis’ and article 18 about ‘artificial intelligence interactive interface technology’ may have something to do with ByteDance,” Cui noted.

“If ByteDance plans to export related technologies, it should go through the approval procedures,” Cui said. “The company’s rapid development in international business relies on its strong domestic technical support, and it continues to provide overseas companies with the its latest core algorithm service. It is a typical technical service export.”

If its international business is to operate smoothly, no matter who its new owner and operator are, it seems a must for them to acquire software code or its usage rights from China, and it may also entail technical services from China to overseas, the expert added.

“Therefore, it is recommended that ByteDance seriously study the adjusted catalogue and carefully consider whether it is necessary to suspend the substantive negotiation of related transactions before performing the statutory declaration procedures,” Cui advised.

(With input from Xinhua)