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BIS Adds 27 to Entity List, 1 to MEU List

November 26, 2021 by Ian Cohen|Top News

The Bureau of Industry and Security added 27 entities to the Entity List for illegally selling technology to China, North Korea and other sanctioned countries, for supporting China’s military modernization efforts or for contributing to Pakistan’s nuclear and missile programs, the agency said Nov. 24. The Entity List additions include a range of laboratories and companies operating in the semiconductor, microelectronics and machinery sectors in China, Japan, Pakistan and Singapore, including several major Chinese chip companies.

BIS added the entities in part to prevent U.S. emerging technologies from being used for China's quantum computing efforts, the Commerce Department said Nov. 24. Eight of the entities listed under China sell technology -- including counter-stealth and counter-submarine applications and items used to break encryption or develop unbreakable encryption -- that support the country’s military modernization, Commerce said.

BIS also revised one existing entry under China, added addresses for an entry under Taiwan and corrected another entry under China. It also added a Russian entity to its military end-user list (MEU) because it produces defense products for a military end-user.

The agency said it will impose a license requirement for all items subject to the Export Administration Regulations and a license review policy of presumption of denial. No license exceptions will be available. The additions took effect Nov. 26.

“Global trade and commerce should support peace, prosperity, and good-paying jobs, not national security risks,” Commerce Secretary Gina Raimondo said. She said the agency is “committed to effectively using export controls to protect our national security.”

Among the additions are three affiliates of China-based Corad Technology Ltd. -- added to the Entity list in 2019 -- that sell technology from the U.S. and other Western nations to Iran, North Korea and the Chinese government. BIS added eight other Chinese chip and advanced technology companies -- including New H3C Semiconductor Technologies Co. Ltd., Yunchip Microelectronics and Shanghai QuantumCTeck Co., Ltd. -- for supporting China’s military modernization programs or trying to acquire U.S. origin items to be used in military applications.

The remainder of the 27 entries, including two employees of Pakistan-based Prime Tech -- either contribute to Pakistan’s nuclear and missile programs or help procure items subject to the EAR for Pakistan, BIS said.

The agency also added the Moscow Institute of Physics and Technology to the MEU list under Russia. The institute will be subject to certain license requirements with a review policy of presumption of denial. Only License Exception GOV (governments, international organizations, international inspections under the Chemical Weapons Convention and the International Space Station) is available.

All exports, reexports and transfers that now require a license as a result of the increased export restrictions that were aboard a carrier to a port as of Nov. 26 may proceed to their destinations under the previous eligibility, BIS said.

The new entries are:

China

Japan

Pakistan

Singapore

MEU List Under Russia