U.S. Department of Commerce Adds 24 Chinese Companies to the Entity List

Jones Day

The companies were added to the Entity List for aiding Chinese military construction in the South China Sea.

Effective August 27, 2020, the Department of Commerce, Bureau of Industry and Security ("BIS") amended the Export Administration Regulations ("EAR") to add 24 Chinese companies to the Entity List for their role in "helping the Chinese military construct and militarize the internationally condemned artificial islands in the South China Sea." These entities are among a total of 60 entities the U.S. government added to the Entity List for various reasons. These changes, including the names of the various entities, were published in the Federal Register on August 27, 2020.

The 24 newly designated Chinese companies operate in the construction, telecommunications, and technology industries. Once an entity is on the Entity List, a license is generally required to export, re-export, or transfer in-country items subject to the EAR to that entity or its employees. License requirements can vary depending on the language used in specific listings.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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