China Announces “Provisions on the Unreliable Entity List”

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Summary -

On September 19, China’s Ministry of Commerce (MOFCOM) released an administrative order – the “Provisions on the Unreliable Entity List” (“the UEL”) – that provides initial procedures for the designation of persons, companies, or organizations that act contrary to China’s interests, as well as laying out possible sanctions.1 While China has not yet targeted any persons or companies under this authority, non Chinese firms operating in China or with Chinese counterparties should monitor developments regarding implementation of the new order to better understand their potential exposure.

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