The Commerce Department’s Bureau of Industry and Security on Wednesday added 44 Chinese entities and institutions to its Entity List.
The agency said it added the entities to the list for “acting contrary to the national security or foreign policy interests of the United States.”
The Export Administration Regulations (EAR) imposes additional license requirements on and limits the availability of most license exceptions for exports, re-exports and transfers (in-country) to those entities added to the Entity List.
A significant reason for the large number of entities added to the BIS list is the inclusion of the Chinese entities’ subordinate institutions. For example, the China Aerospace Science and Industry Corporation Second Academy’s listing includes 13 subordinate institutions, while China Electronics Technology Group Corporation 13th Research Institute (CETC 13) has connections to 12 subordinate institutions. Each of the listed Chinese entities also uses aliases, which BIS attempts to include in the Entity List.
The End-User Review Committee (ERC), which is comprised of Commerce, State, Defense, Energy and Treasury department representatives, makes all decisions regarding additions to, removals from or other modifications to the Entity List. The ERC makes all decisions to add an entry to the Entity List by majority vote and all decisions to remove or modify an entry by unanimous vote.