News 01 December 2021

New China Risks as BIS Adds Quantum Companies to Entity List

The Commerce Department’s Bureau of Industry and Security (‘BIS’) issued a final rule on 24 November 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.’


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.’


BIS said 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.’

Read more here: https://www.federalregister.gov/public-inspection/2021-25808/addition-of-entities-and-revision-of-entries-on-the-entity-list-and-addition-of-entity-to-the