Six Chinese Companies Added to Entity List After Spy Balloon Incident
On February 14, 2023, the Department of Commerce's Bureau of Industry and Security (BIS) published a rule (88 FR 9389) adding six companies in China to the Entity List.
The Entity List, found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR), restricts exports of U.S.-origin goods and technology to listed parties. For these additions, the restrictions create a license requirement with a presumption of denial for all exports, reexports, or transfers subject to the EAR. This includes items classified as EAR99 or other items that would otherwise be shipped No License Required, or NLR.
The new members of the Entity List are:
- Beijing Nanjiang Aerospace Technology Co., Ltd.;
- China Electronics Technology Group Corporation 48th Research Institute;
- Dongguan Lingkong Remote Sensing Technology Co., Ltd.;
- Eagles Men Aviation Science and Technology Group Co., Ltd. (EMAST);
- Guangzhou Tian-Hai-Xiang Aviation Technology Co., Ltd.; and
- Shanxi Eagles Men Aviation Science and Technology Group Co., Ltd.
The companies were added to the Entity List because of their support for Chinese military modernization efforts, particularly People's Liberation Army (PLA) High Altitude Balloons used for intelligence and reconnaissance activities.
BIS also published a press release on the new additions to the Entity List. This action is a reminder that sanctions lists are subject to daily change and sanctions programs often reach beyond the borders of the targeted country. Keep up with these and other changes with ECScreening.