Xinhua News Agency, Beijing, August 6. Title: An important upgrade of China's economic and trade governance system - Experts interpret China's first foreign trade national security investigation

Xinhua News Agency reporter Xie Xiyao

The Ministry of Commerce has recently implemented a number of countermeasures against the United States' series of negative measures related to China. One of them is to launch a foreign trade national security investigation into relevant imported printing and copying office equipment. This is China's first foreign trade national security investigation.

Relevant experts pointed out in an interview with Xinhua News Agency reporters that this is an important upgrade of China’s economic and trade governance system, marking a new stage of development in the implementation of national security laws and regulations in the field of foreign trade.

What is a foreign trade national security investigation?

Zhang Monan, deputy director and researcher of the U.S.-European Research Department of the China Center for International Economic Exchanges, said that foreign trade national security investigations are a routine arrangement in line with internationally accepted rules, and are also an important upgrade of China’s economic and trade governance system after the revision of the Foreign Trade Law of the People’s Republic of China.

Zhang Monan believes that currently, major economies such as the United States and the European Union have established mature trade security investigation mechanisms.Our country's establishment of a national security investigation system for foreign trade is in line with international practice and is a routine system construction for an open economy to improve its economic and trade governance system.

“This is not only a necessary response to global unfair trade practices, but also an institutional arrangement to safeguard national security, ensure the resilience of the industrial chain and supply chain, and promote the high-quality development of foreign trade.” Zhang Monan said that from the two consecutive announcements on trade barriers to the United States on March 27 this year, to the issuance of the "Industrial Chain Supply Chain Security Investigation Work Methods" on June 22, and to the launch of the first foreign trade national security investigation on August 5, China is building a systematic and institutionalized framework.

In the view of Shi Xiaoli, director of the WTO Legal Research Center of China University of Political Science and Law and professor of the School of International Law, this investigation marks a new stage of development in the implementation of national security laws and regulations in the field of foreign trade. my country’s foreign trade investigation tools have been further enriched and improved, and my country’s foreign trade investigation capabilities have been further improved.

Why are investigation products closely related to national security interests?

Relevant data shows that in recent years, the domestic market sales volume and amount of related imported printing and copying office equipment have accounted for half of the domestic market, which has had a serious impact on the development of related domestic industries. The market share of domestic industries with completely independent intellectual property rights is less than 25%.

“Therefore, it is indeed necessary to launch the foreign trade national security investigation tool. Through in-depth investigation, we can accurately grasp the import situation of relevant products in our country, objectively assess the impact of imported products on our domestic industry and market, especially comprehensively understand the relevant imports and relevant foreign government-related matters."The impact of policies and measures on my country's national security interests in foreign trade."Shi Xiaoli said that if the investigation reaches a positive conclusion that the import of the product under investigation has an impact on my country's national security interests in foreign trade, the relevant departments have the right to take necessary measures in accordance with the law to safeguard my country's security and development interests.

According to the announcement issued by the Ministry of Commerce, the first foreign trade national security investigation matters mainly include seven aspects: the import situation of the investigated objects; the impact of imported products, technologies or services on national security interests; domestic demand in related fields and dependence on foreign goods, technologies or services; the development status of domestic related industries and the impact of imports; the ability and level of domestic related industries to meet domestic needs and national security interests; the impact of relevant foreign government policies and measures on national security interests; other matters affecting foreign trade national security interests.

“The launch of the foreign trade national security investigation was carried out in accordance with the law and regulations, and has sufficient domestic legal authorization.” Shi Xiaoli said that Article 41, paragraph 5, of the Foreign Trade Law of the People’s Republic of China clearly stipulates that the foreign trade department of the State Council may conduct investigations on matters related to national security interests in foreign trade on its own or in conjunction with other relevant departments of the State Council.

“Prudent” is the key word mentioned by the interviewed experts.

“my country’s foreign trade national security investigation is a standardized regulatory tool within the legal framework. It always strictly abides by the boundaries of the rule of law and the bottom line of safety. Its investigation methods and focuses are prudently advanced around statutory core interests.” Zhang Monan pointed out.

From the purpose of the investigation, China’s foreign trade national security investigations are prudent and objective, oppose the instrumentalization, politicization, and expansion of national security investigations, and always safeguard the national security interests of foreign trade.

“The product scope of this investigation is very restrained and is indeed closely related to national security. Therefore, it is different from the so-called national security investigations launched by some countries on a large scale against entire industry chain products in multiple industries and imports that have no substantial connection with national security.” Shi Xiaoli said that it is reasonable, legal and appropriate for my country to launch a foreign trade national security investigation into relevant imported printing and copying equipment.

Zhang Monan said that this investigation adheres to the principle of "necessary and limited", adheres to legal boundaries, implements precise policies, and evaluates the impact of relevant imports on my country's national security interests in foreign trade. The purpose is to build a secure bottom line in the process of high-level opening up, maintain a fair and stable international trade order, rather than implement protectionism in the name of security, and continue to be a responsible, rule-based, and bottom-line open country.