The US Department of Commerce has added a new batch of Chinese companies to its Entity List, intensifying export restrictions aimed at China.
On January 3, the Bureau of Industry and Security under the US Department of Commerce added 13 entities, including 11 from China, 1 from Myanmar, and 1 from Pakistan to its “Entity List,” meaning the companies will be subject to export controls.
The 11 Chinese entities include both enterprises and research institutions. Of them, Chengdu RML Technology Co., Ltd. is accused of supplying precision-guided missiles and satellite communication systems to the Chinese military, Hefei Starwave Communication Technology Co., Ltd. is alleged to provide RF or microwave products and Chengdu Yaguang Electronics Co., Ltd. and its parent company, Yaguang Technology Group Co., Ltd., are accused of supplying dual-use items.
Other entities, including the Chinese Academy of Sciences Changchun Institute of Optics, Fine Mechanics, and Physics; Ji Hua Laboratory; Nanjing Simite Optical Instruments Co., Ltd.; Peng Cheng Laboratory; Shanghai Institute of Optics and Fine Mechanics; Suzhou Ultranano Precision Optoelectronics Technology Co., Ltd.; and Wuhu Kewei Zhaofu Electronics Co., Ltd., have been accused of supporting China’s military modernization.
This allegedly involves some activities of concern to the US, including hypersonic weapons development, hypersonic vehicle design and modeling, and the use of proprietary software for weapon design and damage modeling.
Based on BIS requirements, exports, re-exports, or domestic transfers of products and technologies controlled under the US Export Administration Regulations (EAR) to these 11 entities or their associated addresses require a license. Applications will operate under a “presumption of denial” policy, making approvals for such licenses highly unlikely.
In its January 3 release of the 2024 annual enforcement review, BIS said that the cross-departmental “Disruptive Technology Strike Force” initiated 15 criminal cases related to export control violations and completed more than 1,440 end-use checks in 60 countries.
The US has shown no signs of easing its export controls on China as the new year begins. On January 2, BIS announced plans to formulate policies to assess security risks in the unmanned aerial systems (UAS) supply chain and to impose restrictions on China-related drone information technology and services, planning to seek public feedback on this proposal.
In response, on January 3, Chinese Foreign Ministry spokesperson Mao Ning said at a regular press conference that China firmly opposes the US’s overgeneralization of the concept of “national security” to interfere with and restrict normal economic and trade activities, thereby undermining the safety and stability of global supply chains.
Mao emphasized that China will take all necessary measures to resolutely protect its legitimate rights and interests.
On January 2, China’s Ministry of Commerce, for the first time, released an export control list targeting 28 US entities, including General Dynamics, banning the export of dual-use items to these entities.
In addition, on the evening of January 2, China’s Ministry of Commerce issued a public notice seeking feedback on proposed adjustments to the “Catalogue of Technologies Prohibited or Restricted from Export in China.” Proposed additions to the restricted export category include technologies for preparing battery cathode materials, lithium extraction from spodumene, and lithium extraction from natural brines.
Meanwhile, three items, including traditional Chinese architectural techniques and building environment control technologies, are proposed for removal.