Key Takeaways
- The draft amendment to China’s Catalogue of Technologies Prohibited or Restricted from Export (Announcement [2026] No. 48) adds 40 new technologies spanning AI, biopharmaceuticals, and solar energy, dramatically widening the scope of export controls.
- Controls are becoming more nuanced and risk‑based: alongside the traditional prohibited/restricted dichotomy, the proposal introduces sector‑specific carve‑outs, “automatic licensing” for certain export forms, and a temporary registration requirement that takes effect immediately.
- From 16 October 2026, exporters must register with MOFCOM before shipping any of the newly listed technologies; this registration does not constitute approval but gives the measures provisional force while the final Catalogue is still under consultation.
Overview of the Proposed Amendment
On 16 October 2026, the Ministry of Commerce of the People’s Republic of China (“MOFCOM”) and the Ministry of Science and Technology (“MOST”) released Announcement [2026] No. 48, inviting public comment until 15 November 2026 on revisions to the Catalogue of Technologies Prohibited or Restricted from Export. The notice states that the proposal “marks a significant evolution of China’s technology export control regime, with more sophisticated and nuanced control approaches than previously adopted.” The draft adds 40 technologies across three strategic sectors—artificial intelligence, biopharmaceuticals, and solar energy—reflecting Beijing’s tightening grip on emerging‑tech flows that could affect national security or economic competitiveness.
Sector‑Specific Controls: Artificial Intelligence
The AI block newly enumerates:
- AI large‑model technology
- AI agent technology
- AI computing‑cluster technology
- Technologies for high‑performance detection and information counter‑measures (including cyber offense and defense)
- Information‑processing technology, covering speech/voiceprint recognition and Chinese‑language translation
A notable carve‑out specifies that “All technologies in this sector that have entered the public domain through open‑source release or academic publication are outside the scope of controls.” Moreover, for restricted AI models, providing overseas users access via API, SaaS, or lightweight on‑device deployment “is not deemed a technology export and is therefore outside the scope of technology export controls.”
The draft distinguishes prohibited from restricted AI technologies by concrete parameters. Prohibited AI includes:
- “AI large models developed using training data classified as ‘core data’ under China’s data security laws,”
- “AI agents used solely or primarily in highly sensitive areas, such as national critical infrastructure, national defense or core government systems,”
- “AI technologies with strong cyber offensive capabilities,” and
- “High‑performance AI detection and identification technologies.”
Restricted AI covers, among others:
- AI large models trained on “important data” or meeting thresholds of 10²⁶ FLOPs, 2 trillion parameters, or globally advanced benchmark rankings,
- High‑performance AI agent technologies not falling under the prohibited bucket,
- AI chip and advanced memory‑chip design,
- Large‑scale AI computing clusters (≥10,000 AI accelerator cards),
- AI‑enabled cybersecurity tools, and
- Speech/voiceprint‑recognition and Chinese‑translation technologies.
Automatic Licensing for AI
The proposal introduces an “automatic licensing” mechanism for restricted AI exports when the transfer takes certain forms, such as open‑source release, overseas deployment where the Chinese party retains control (e.g., in its own overseas cloud), or other cross‑border technical collaboration. The text notes that “this mechanism does not exist under the current regulatory framework for technology exports and is expected to be further defined in future rules or guidelines.”
Sector‑Specific Controls: Biopharmaceuticals
Newly controlled biopharmaceutical technologies comprise:
- Cell and gene‑therapy technologies
- Small nucleic‑acid drug technologies
- Pathogenic microorganism technologies
Pathogenic microorganism technologies are entirely prohibited from export. For cell‑gene and small‑nucleic‑acid areas, the prohibited category captures “technology platforms”—reusable, foundational R&D assets capable of supporting multiple drug products—while the restricted category covers more narrow tools such as those for “the discovery and validation of novel targets,” with “novel” meaning not previously disclosed anywhere in the world.
A carve‑out under the prohibited category clarifies that the ban applies only to transfers of intellectual‑property ownership; licensing, contract R&D, and production services that do not involve ownership transfer remain outside the prohibition. However, if the technology falls under the restricted bucket, those same activities stay subject to licensing, though automatic licensing may apply when the export is:
- for public‑health emergencies or humanitarian relief,
- part of cross‑border joint R&D projects using overseas resources, or
- conducted via licensing without ownership transfer.
Sector‑Specific Controls: Solar Energy
The solar‑energy addition targets technologies used at various stages of the polysilicon‑wafer‑photovoltaic‑cell supply chain. Notably, the draft extends controls to “a list of core and essential manufacturing equipment that embeds or supports the controlled technologies,” an approach not previously used by MOFCOM for other sectors and seemingly aimed at curbing the overseas deployment of Chinese‑made solar‑manufacturing facilities.
Immediate Impact Before Finalization
Even before the amended Catalogue is finalized, the announcement imposes a temporary registration requirement effective 16 October 2026. Exporters must register with MOFCOM prior to shipping any newly listed technology. The text stresses that “registration does not itself amount to an approval or authorization,” but it gives the measures provisional force, allowing authorities to monitor and potentially block shipments while the final rule undergoes public comment.
Recommended Actions for Multinational Companies
The notice advises firms operating in AI, biotechnology, pharmaceuticals, and solar energy to:
- Audit R&D and collaboration activities in China involving locally developed know‑how to determine whether any fall within the expanded control scope.
- Assess deployment boundaries for China‑developed AI models or agents—especially API, SaaS, or on‑device offerings—to verify whether they trigger export controls.
- Treat technology‑export risk as a threshold consideration for inbound/outbound investments, individual travel, and any cross‑border technology transfer, given the broadening reach of the regime.
By proactively mapping their technology flows against the new parameters—core vs. important data thresholds, model‑size benchmarks, platform‑vs‑target distinctions, and equipment‑level controls—companies can better navigate licensing pathways, invoke automatic‑licensing exemptions where applicable, and mitigate the risk of inadvertent violations.
Quoted excerpts are taken directly from MOFCOM/MOST Announcement [2026] No. 48 as released on 16 October 2026.
https://sanctionsnews.bakermckenzie.com/china-proposes-expanded-export-controls-on-ai-biopharma-and-solar-energy-technologies/
