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BIS Adds Thirty-Seven Chinese Entities to Entity List Related to Quantum Technology, Nuclear Programs, and Chinese and Russian Militaries

On May 9, 2024, the Department of Commerce, Bureau of Industry and Security (BIS) published a rule (89 FR 41886) adding thirty-seven entries to the Entity List.  The May 9th addition, all located in China, are:

  • AEE Shenzhen Yidian Aviation Technology Co., Ltd.,
  • Beijing Academy of Quantum Information Sciences,
  • Beijing BDStar Navigation Co., Ltd,
  • Beijing Leike Defense Technology Co., Ltd.,
  • Beijing Ruidakang Technology Co., Ltd.,
  • Beijing Tianhaida Technology Co., Ltd.,
  • Beijing Zhongshang Dingsheng Mechanical and Electrical Equipment Co., Ltd.,
  • CETC Chip Technology Co., Ltd.,
  • Ceyear Technologies Co., Ltd.,
  • Chengdu Day Communication Technology Co., Ltd.,
  • Chengdu Zongheng Automation Technology Co., Ltd.,
  • China Electronics Technology Group Corporation 16th Research Institute,
  • China Electronics Technology Group Corporation 32nd Research Institute,
  • China Electronics Technology Group Corporation 36th Research Institute,
  • China Electronics Technology Group Corporation 41st Research Institute,
  • China Electronics Technology Group Corporation 45th Research Institute,
  • China Electronics Technology Group Corporation Electronic Equipment Group Co., Ltd.,
  • Chinese Academy of Science, Center for Excellence in Quantum Information and Quantum Physics,
  • Chinese Academy of Sciences, Institute of Physics,
  • Chinese Academy of Sciences, Key Laboratory for Quantum Information,
  • Chinese Academy of Sciences' Shanghai Institute of Microsystem and Information Technology,
  • CSIC Pride (Nanjing) Cryogenic Technology Co., Ltd.,
  • GEOVIS Technology Co., Ltd.,
  • Hefei National Laboratory for Quantum Information Science,
  • Hexin Xingtong Technology (Beijing) Co., Ltd.,
  • Jinan Institute of Quantum Technology,
  • Origin Quantum Computing Technology (Hefei) Co., Ltd.,
  • Quantum Science and Technology Yangtze River Delta Industrial Innovation Center,
  • Shanghai Center for Quantum Science Research,
  • Shenzhen Institute of Quantum Science and Engineering,
  • Shenzhen Yidian Technology Co., Ltd.,
  • Suzhou Telecom Electric Plant Co., Ltd.,
  • TaiYuan EFT Equipment Manufacturing Co., Ltd.,
  • United Microelectronics Center Co., Ltd.,
  • University of Science and Technology of China,
  • Xi'an Hengda Microwave Technology Development Co., Ltd., and
  • Zhongke Xingtu Space Technology Co., Ltd.

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 restructions 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.

BIS also published a press release on these additions.  The listings were based on support for the People's Republic of China's (PRC) quantum technology advancements with substantial military applications, the PRC’s nuclear programs, and shipment of controlled items to Russia following its invasion of Ukraine in February 2022.

The Entity List includes over six hundred Chinese entities, plus Chinese-linked entities worldwide. Support for Chinese military modernization and Russian military efforts are two of many foreign policy concerns addressed by the Entity List. Screening Chinese parties is a particular concern, but it should always be noted that parties in any country can end up on a sanctions list.