Article 49 of the Regulations of the People's Republic of China on Export Control of Dual-Use Items establishes a framework for "discretionary extraterritorial application", under which the competent commerce authority determines, in accordance with law, whether to impose controls, their scope, and the degree of restriction. This power is administrative and regulatory in nature. Its exercise must serve the purposes of safeguarding national security and interests and fulfilling international obligations, including non-proliferation obligations, while remaining subject to proportionality and due process. The exercise of discretion must also rest on factual findings concerning technology origin, controlled content, and affiliations among relevant entities. In practice, inadequate means of overseas verification, unclear criteria for factual determinations, and limited enforcement resources impede fact-finding and increase the burdens of licensing review and business compliance. Refining this framework therefore requires preserving necessary administrative discretion while clarifying the conditions for imposing controls and the criteria for risk classification. It also requires an appropriate allocation of investigative responsibilities and obligations to provide supporting documentation between administrative authorities and operators, together with improved mechanisms for exemptions, review, and legal remedies. These measures should ensure that the scope of controls is commensurate with actual risks and enforcement capacity, and that the relevant decisions are subject to appropriate procedural safeguards and ex post review.