China: New Exit Ban Rules Target National Security, Tech Export Violations

• New border control rules in China, effective recently, allow for exit bans on citizens involved in activities endangering national or industrial security.
• These regulations specifically target violations of technology export or import rules, reflecting China's heightened concern over tech transfer amidst competition with the U.S.
• Authorities can impose travel bans ranging from six months to three years and may withhold notification from affected individuals if national security or investigations are at risk.
• Experts express concern over the broad definitions of "national security" and "technology security," granting officials substantial discretion in applying the bans.
• The Cyberspace Administration of China stated the rules target illegal cross-border activities, not ordinary citizens with legitimate travel needs.

Legal experts have voiced significant apprehension regarding the substantial discretion these regulations grant to officials.

New border control rules recently implemented in China introduce significant provisions that could prevent Chinese citizens from leaving the country. These regulations, which took effect on a Tuesday, are part of a broader overhaul of existing border management policies. At their core, the rules empower authorities to impose travel restrictions on individuals found to be engaged in illegal activities that compromise either national or industrial security.

Under the newly enacted framework, a Chinese citizen who has participated in illegal or criminal activities overseas that are deemed to endanger national security could face a prohibition on exiting China. This potential ban would last for a period ranging from six months to three years, with the duration calculated from the date of their return to the country. Similarly, individuals found to be in violation of China's technology export or import regulations may also be subject to an exit ban if their actions are judged to jeopardize industrial or technological security.

A particularly notable aspect of these new China border control rules is a provision that allows authorities to refrain from notifying affected individuals about their travel restrictions. This non-notification clause can be invoked if informing the person is believed to compromise national security or impede an ongoing criminal investigation. Beyond citizens, the regulations also include measures for foreigners, potentially barring non-nationals from entering China for one to five years if they provide false information on a visa application or at a port of entry. Furthermore, the rules aim to protect Chinese citizens from being deceived into traveling abroad only to be forced into illegal activities like gambling or online scam operations, a persistent problem in recent years.

Legal experts have voiced significant apprehension regarding the substantial discretion these regulations grant to officials. The broad terminology employed within the text, such as "national interests" and "technology security," raises concerns about the arbitrary classification of activities and individuals under the authorities' purview. Mark Jia, a law professor at Georgetown University, highlighted that the contemporary expansive definition of "national security" could readily lead to individuals being subjected to travel restrictions, potentially even without the fundamental procedural protections ostensibly outlined in the regulatory text.

The consultancy Trivium, in an analysis issued approximately six weeks after the regulations were announced, underscored that these new measures are a clear indication of China's serious commitment to preventing the unauthorized transfer of crucial technology and specialized technical knowledge. This commitment was further illustrated by an earlier incident in April, when China unexpectedly blocked tech giant Meta's acquisition of Manus, an artificial intelligence startup. Manus, a Singaporean company with Chinese origins, saw its deal halted due to apparent government concerns over the transfer of advanced technology, signaling a proactive stance on China industrial security exit control.

The Cyberspace Administration of China (CAC), the agency responsible for monitoring online discussions, has attempted to alleviate public anxieties surrounding the new regulations. In an online post published last week, the CAC clarified that these measures are specifically designed to target individuals involved in illegal cross-border activities. The agency emphasized that the rules are not intended to impede ordinary Chinese citizens who have legitimate reasons for international travel.

This official statement aims to distinguish between those engaged in illicit conduct and the general populace, asserting that the vast majority of Chinese outbound travel restrictions will not affect ordinary citizens. The government's messaging seeks to assuage concerns that the new China national security law exit provisions would make international travel more difficult for the average person.

Lawyers and compliance officers advising clients with operations or personnel in China, particularly in technology or sensitive industries, must assess the heightened risk of arbitrary travel restrictions for their employees or partners. They should review internal compliance policies regarding technology transfer and ensure robust adherence to Chinese regulations to mitigate potential exit bans based on national or industrial security concerns.

Source: Original reporting via Associated Press