china-sanctions 25 August 2022

BIS lists seven Chinese entities for military modernisation efforts

The US Department of Commerce’s Bureau of Industry and Security (‘BIS’) has issued a final rule ‘adding seven Chinese space, aerospace, and related technology entities to the Entity List and severely restricting their access to commodities, software, and technologies subject to the Export Administration Regulations (EAR).’

BIS said: ‘These seven entities have been added to the Entity List for activities contrary to U.S. national security and foreign policy interests, specifically for acquiring and attempting to acquire U.S.-origin items in support of the People’s Republic of China’s (PRC) military modernization efforts. With this action, the Commerce Department will have approximately 600 Chinese entities on the Entity List – more than 110 of which have been added since the start of the Biden Administration.’

Under Secretary of Commerce for Industry and Security, Alan Estevez said, ‘U.S. technologies that support space and aerospace activities should not be used to support the PRC’s military modernization. We are constantly monitoring these sectors for evidence of diversion. China’s military-civil fusion program requires BIS to be vigilant and act forcefully when necessary to protect our sensitive technologies.’

The entities are:

  • China Aerospace Science and Technology Corporation (CASC) 9th Academy 771 Research Institute;
  • China Aerospace Science and Technology Corporation (CASC) 9th Academy 772 Research Institute;
  • China Academy of Space Technology 502 Research Institute;
  • China Academy of Space Technology 513 Research Institute;
  • China Electronics Technology Group Corporation 43 Research Institute;
  • China Electronics Technology Group Corporation 58 Research Institute; and
  • Zhuhai Orbita Control Systems.

The rule imposes a licence requirement ‘for all exports, reexports, or transfers subject to the EAR to which these seven entities are parties.’ BIS says it will review licence applications involving the entities under a presumption of denial.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3121-2022-08-23-press-release-seven-entity-list-additions/file