On October 21, 2024, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) added 26 entities to its Entity List for activities allegedly harmful to U.S. national security and foreign policy interests. This includes six Chinese companies as well as firms from Egypt, Pakistan, and the United Arab Emirates (UAE). The entities were reportedly involved in violations of U.S. export controls, participation in weapons programs of concern, and attempts to evade sanctions, particularly related to Russia and Iran.
According to the BIS, the six Chinese entities were added for procuring U.S.-origin items to support China's military modernization and for their involvement in Iran's weapons of mass destruction (WMD) and unmanned aerial vehicle (UAV) programs. They were also cited for dilatory and evasive conduct during end-use checks, which raised concerns about their compliance with U.S. regulations.
In a statement, Alan F. Estevez, Under Secretary of Commerce for Industry and Security, emphasized the U.S. government's commitment to preventing entities from undermining U.S. controls. "Our actions today send a message to malicious actors that if they violate our controls, they will pay a price," Estevez said.
The move to blacklist more entities under the banner of "national security" continues the U.S.'s broader strategy of restricting China's access to key technologies. Critics argue that such actions represent an attempt by the U.S. to maintain technological dominance and could disrupt global supply chains and international trade. Chinese officials and business representatives have expressed concerns over these unilateral sanctions, viewing them as economic coercion and interference in China's right to conduct normal economic and trade activities.
Additionally, Hefei Bitland Information Technology Co., Ltd., a Chinese entity that had previously been on the Entity List, was removed following its dissolution. The company, established in 1992, had collaborated with major global tech companies such as Lenovo, Google, ASUS, Intel, Microsoft, and AMD, but its business rapidly declined after it was added to the Entity List in 2020.
This latest action by BIS is part of a broader U.S. strategy to curb Chinese technological advancements, particularly in sectors like semiconductors, artificial intelligence, and defense technology. China has consistently asserted that its military modernization is defensive in nature and essential for regional and global peace, while the U.S. continues to take measures that it claims are necessary to protect its national security.
The full list of newly added entities and further details on the actions can be found on the Federal Register's website.
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