Export Restrictions Imposed on 23 Mainland Chinese Entities
12 July 2021
The U.S. Department of Commerce’s Bureau of Industry and Security has issued a final rule that effective 12 July adds 23 mainland Chinese entities to the Entity List.
According to a DOC press release, 14 of these entities “have enabled Beijing’s campaign of repression, mass detention, and high-technology surveillance against Uyghurs, Kazakhs, and members of other Muslim minority groups in the Xinjiang Uyghur Autonomous Regions of China (XUAR)”. These entities are China Academy of Electronics and Information Technology, Xinjiang Lianhai Chuangzhi Information Technology Co. Ltd., Leon Technology Co. Ltd., Xinjiang Tangli Technology Co. Ltd., Shenzhen Cobber Information Technology Co. Ltd., Xinjiang Sailing Information Technology Co. Ltd., Beijing Geling Shentong Information Technology Co. Ltd., Tongfang R.I.A. Co. Ltd., Shenzhen Hua'antai Intelligent Technology Co. Ltd., Chengdu Xiwu Security System Alliance Co. Ltd., Beijing Sinonet Science & Technology Co. Ltd., Urumqi Tianyao Weiye Information Technology Service Co. Ltd., Suzhou Keda Technology Co. Ltd. and Xinjiang Beidou Tongchuang Information Technology Co. Ltd.
For 13 of these 14 entities, BIS is imposing a licence review policy of case-by-case review for Export Control Classification Numbers 1A004.c, 1A004.d, 1A995, 1A999.a, 1D003, 2A983, 2D983 and 2E983, for EAR99 items described in the Note to ECCN 1A995, and for items necessary to detect, identify and treat infectious disease, with a presumption of denial for all other items subject to the Export Administration Regulations. In the case of Suzhou Keda Technology Co. Ltd., BIS is imposing a licence requirement for all items subject to the EAR and a licence review policy of presumption of denial for all items subject to the EAR, given this entity’s additional relationship with military end-users.
Hangzhou Hualan Microelectronics Co. Ltd. and Kyland Technology Co. Ltd., along with Kyland subsidiaries Armyfly and Kindroid, have been added to the Entity List for activities contrary to the national security and foreign policy of the U.S. Specifically, BIS has determined that these entities are both acquiring and attempting to acquire U.S.-origin items in support of military modernisation for the People’s Liberation Army.
Wuhan Raycus Fiber Laser Technologies Co. Ltd. has been added for engaging in conduct that poses a risk of violating the EAR, specifically because it has potentially been involved in the procurement of U.S.-origin items for an unauthorised military end-use. Moreover, the additions of Beijing Hileed Solutions Co. Ltd., Beijing E-Science Co. Ltd., Info Rank Technologies and Wingel Zhang are being justified on the basis that these entities exported and attempted to export items subject to the EAR to an entity on the U.S. Department of the Treasury’s Office of Foreign Asset Control Specially-Designated Nationals List without the necessary licences.
For these entities, BIS is imposing a licence requirement for all items subject to the EAR and a licence review policy of presumption of denial for all items subject to the EAR.
Shipments of items removed from eligibility for a licence exception or for export, re-export or transfer (in-country) without a licence (NLR) as a result of this rule that were en route aboard a carrier to a port of export, re-export or transfer on 12 July pursuant to actual orders for export, re-export or transfer to or within a foreign destination may proceed to that destination under the previous eligibility.
- North America
- Mainland China