Wang Qinhua, director of the Department of Mechanical, Electronic and Hi-Tech Industries under the Ministry of Commerce, said that the Commerce Department of United States officially published the "Revisions and Clarification of Export and Re-export Controls for the People's Republic of China (PRC); New Authorization Validated End-User; Revision of Import Certificate and PRC End-User Statement Requirements" on June 19th. It went into effect from that same day.

This action seriously affected the confidence of enterprises in both countries to develop high-tech trade. China expressed regret and grave concern over this measure. China holds the right to further comment on the new regulations and prepare to take the necessary measures.

Wang Qinhua said that after the new regulations are implemented, US enterprises will lose many potential trade opportunities because of the export control policy on China and will pay a high price. The new regulations published by the US expand the number of categories of controlled licensed goods exported to China, and goods that require the End-User Statements issued by the PRC Ministry of Commerce.

Thus, it will increase the cost of the enterprises from both countries to develop high-tech and strategic trade. China believes that it is inappropriate for the US to insist on publishing new regulations without fully considering the opinions of China a move that is contrary to the spirit of cooperation between the two sides. The new regulations have established unreasonable obstacles and prerequisites in normal trade that not in line with the interests of enterprises from both sides, and will damage the efforts made by China to expand imports from the US. They also go against the encouragement of a balance in the development of China-US trade. All the negative consequences that the new rule imposes on bilateral high-tech trade will be borne by the US side.

From 2001 to 2006, China's imports of high-tech products increased at an average annual growth of 31 percent. At the same time, the proportion of China's high-tech products imported from the US fell from 18.3 percent to 9.1 percent.