China to curb exports of technologies such as AI, photovoltaics

Why in news?

China has released a draft list banning or restricting exports of 40 technologies in AI, biotech and solar manufacturing.

UPSC Relevance

Prelims: Export control, SCOMET list, perovskite and tandem solar cells, polysilicon, ALMM.

MAINS, GS3, Indian Economy, Energy Security, Science and Technology

What has China proposed? 

The draft, called “Announcement No. 48”, was issued by China’s Ministry of Commerce and Ministry of Science and Technology. It covers 40 technologies in three fields – artificial intelligence, biomedicine and photovoltaics.

Note that finished solar panels are mostly not restricted. What China is guarding is the know-how to make the next generation of solar cells.

Why is China doing this?

• Protecting its lead: China controls over 80% of every stage of solar manufacturing (IEA), and well over 90% in polysilicon and wafers. Sharing next-gen know-how would help rivals catch up.
• Response to US curbs: Since 2022, the US has restricted advanced chips and chip-making tools to China. China is building its own toolkit to hit back.
• Slowing “China+1”: India, the US and the EU are trying to build alternative supply chains. Holding back technology raises their cost and time.
• A clear pattern: Curbs on gallium and germanium (2023), graphite (2023), rare earth processing technology (2023) and several rare earth elements (2025). This is often called the weaponisation of supply chains.

Impact on India

• Blocked leapfrogging: Perovskite–silicon tandem cells have crossed 34% efficiency in labs, compared to about 22–25% for common silicon panels. A ban on this know-how makes it harder for Indian firms to jump to the next generation.
• Licensing delays: Technology tie-ups with Chinese firms for polysilicon and cell lines may now need Chinese government approval, slowing new projects.
• Pressure on targets: India aims for 500 GW of non-fossil capacity by 2030. Delays in domestic cell and wafer plants can hurt this.
• Cost of compliance: ALMM List-II for solar cells applies from June 2026, so developers must use domestic cells. If cell capacity grows slowly, project costs rise.
• Beyond solar: Curbs on AI and gene therapy platforms affect India’s biotech and digital ambitions too. Earlier, there were reports of Chinese engineers being recalled from electronics plants in India – a reminder that skills can also be restricted.

Steps India has already taken

• PLI scheme for high-efficiency solar modules: Outlay of ₹24,000 crore, with priority to integrated units from polysilicon to module.
• ALMM: Approved List of Models and Manufacturers – List-I for modules and List-II for cells – to push domestic manufacturing.
• Basic Customs Duty: 40% on imported modules and 25% on imported cells since April 2022.
• National Critical Mineral Mission (2025): To secure minerals like lithium, graphite and rare earths needed for clean energy.
• Partnerships: Minerals Security Partnership, Quad and technology partnerships with the US and EU to diversify sources.

Way forward

• Fund upstream R&D: Mission-mode research on perovskite and tandem cells through IITs and labs, with clear pathways from lab to factory.
• Diversify technology partners: Source equipment and know-how from Germany, Japan, South Korea and the US.
• Patient capital for polysilicon: Polysilicon plants are power-hungry and capital-heavy; they need cheap power, long-term finance and assured demand.
• Build skills: Train process engineers in-house so that withdrawal of foreign experts does not stall plants.
• Strengthen own controls: Keep SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies, representing India’s national export control list for dual-use goods with civilian and military or WMD applications) updated and use it as a bargaining tool in tech diplomacy.

China’s draft is a reminder that self-reliance in clean energy cannot stop at assembling panels. The real security lies in owning the technology at the top of the value chain.

Practice MCQ

Q1. Consider the following statements:

Statement I: Perovskite–silicon tandem solar cells can achieve higher efficiency than conventional single-junction silicon solar cells.

Statement II: In a tandem cell, two layers of different materials absorb different parts of the solar spectrum.

Which one of the following is correct in respect of the above statements?

(a) Both Statement I and Statement II are correct and Statement II explains Statement I

(b) Both Statement I and Statement II are correct but Statement II does not explain Statement I

(c) Statement I is correct but Statement II is incorrect

(d) Statement I is incorrect but Statement II is correct

Answer: (a). The perovskite layer captures high-energy (blue) light while silicon captures lower-energy (red) light, so less sunlight is wasted.

Mains Practice Question

Q. China’s proposed curbs on the export of solar and AI technologies show that control over technology is becoming a tool of geopolitics. Examine the implications for India’s clean energy goals and suggest measures to build a resilient solar manufacturing ecosystem. (15 marks, 250 words)

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