PRC Quantum companies among 27 new entity list additions
The Commerce Department’s Bureau of Industry and Security (‘BIS’) has issued a final rule adding 27 foreign entities and individuals to its Entity List for ‘engaging in activities that are contrary to the national security or foreign policy interests of the United States.’
They are located in the People’s Republic of China (PRC), Japan, Pakistan and Singapore, while one entity, based in Russia, has been added to the Military End-User (‘MEU’) list.
Eight of the entities are Chinese companies which have been added ‘as part of the Department of Commerce’s efforts to prevent U.S. emerging technologies from being used for the PRC’s quantum computing efforts that support military applications, such as counter-stealth and counter-submarine applications, and the ability to break encryption or develop unbreakable encryption.’
US Secretary of Commerce, Gina M. Raimondo said that ‘Global trade and commerce should support peace, prosperity, and good-paying jobs, not national security risks. Today’s actions will help prevent the diversion of U.S. technologies to the PRC’s and Russia’s military advancement and activities of non-proliferation concern like Pakistan’s unsafeguarded nuclear activities or ballistic missile program. The Department of Commerce is committed to effectively using export controls to protect our national security.’
BIS said that the PRC-based technology entities ‘support the military modernization of the People’s Liberation Army and/or acquire and attempt to acquire U.S. origin-items in support of military applications. Today’s action will also restrict exports to PRC producers of electronics that support the People’s Liberation Army’s military modernization efforts.’
Amongst those added are three affiliates of Corad Technology Limited, added to the entity list in 2019. BIS says the affiliates have been added ‘due to their involvement in sales of technology from the United States and other Western nations to Iran’s military and space programs, Democratic People’s Republic of Korea (North Korea) front companies, and PRC government and defense industry subordinate entities.’
BIS has also added the Moscow Institute of Physics and Technology to the MEU List on the basis of its production of military products for a military end-user.
