ARTICLE
24 February 2025

China Technology Transfer Control Act Introduced To Strengthen Export Controls Vis-à-Vis China

CM
Crowell & Moring LLP

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On February 7, 2025, Representative Mark Green (R-TN-7) introduced the China Technology Transfer Control Act, a bill which would restrict the export to the People's Republic of China certain "national interest technology" and intellectual property.
United States International Law

On February 7, 2025, Representative Mark Green (R-TN-7) introduced theChina Technology Transfer Control Act,a bill which would restrict the export to the People's Republic of China ("PRC") certain "national interest technology" and intellectual property. According to a statement by Rep. Green, the bill is intended as a sign to "get serious about protecting our sensitive technologies and to impose severe costs when China uses our technology for malign purposes," citing Tiktok, DeepSeek, and RedNote (also known as Xiaohongshu) as recent examples of malign Chinese influence on U.S. national and economic security.

As drafted, the technologies and IP that would be controlled are as follows:

  • "Technology or intellectual property that would make a significant contribution to the military potential of the People's Republic of China that would prove detrimental to the national security of the United States."
  • "Technology used by the Government of the People's Republic of China to carry out violations of human rights or religious liberties."
  • Technology or intellectual property that is a "component of the production of products," where those products are (1) manufactured or produced in, or exported from, the People's Republic of China, and (2) determined by the United States Trade Representative to be (a) supported by the PRC government pursuant to the Made in China 2025 Policy, or (b) otherwise receive support from the Chinese government and that have or will in the future displace net exports of like products by the United States. The bill flags a few items that should be included in this category:
    • Civil aircraft.
    • Turbine engines.
    • Motor cars and vehicles.
    • Advanced medical equipment.
    • Advanced construction equipment.
    • Agricultural machinery.
    • Railway equipment.
    • Diesel locomotives.
    • Moving freight.
    • Lithium battery manufacturing equipment.
    • Artificial intelligence.
    • High-capacity computing.
    • Quantum computing.

The bill also would require the President to impose asset-freezing sanctions on any foreign person that sells to China or purchases from China any of the aforementioned items, or on any Chinese person who knowingly uses one of those items (whereby the Chinese person received that item in violation of U.S. export controls). Versions of this bill were introduced in the last three Congresses, but did not advance beyond the relevant committees during those sessions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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