The Commerce Department’s Bureau of Industry and Security (BIS) released two rules Thursday, one adding 36 entities to the Entity List which applies stringent license requirements that will severely restrict these entities’ access to commodities, software, and technologies subject to the Export Administration Regulations (EAR).
The entities are primarily located in the People’s Republic of China (PRC) with one entity, which is a subsidiary to a PRC entity being added in this rule, located in Japan.
The second rule removes entities from the Unverified List (UVL) due to satisfactory completion of End-Use Checks (EUCs) and verification of those entities’ bona fides, including in cooperation with the PRC government. A net total of 25 Chinese parties are being removed from restricted-party lists.
The second rule also adds 9 Russian parties to the Entity List from the UVL due to the inability to complete EUCs.
“Today we are building on the actions we took in October to protect U.S. national security by severely restricting the PRC’s ability to leverage artificial intelligence, advanced computing, and other powerful, commercially available technologies for military modernization and human rights abuses,” said Under Secretary of Commerce for Industry and Security Alan Estevez. “This work will continue, as will our efforts to detect and disrupt Russia’s efforts to obtain necessary items and technologies and other items for its brutal war against Ukraine, including from Iran.”
“Today’s rules further the Biden Administration’s efforts to deny the PRC access to advanced technologies for military modernization and human rights abuses,” said Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler.
“Following on BIS’s advanced computing and semiconductor manufacturing equipment rule of October 7, today’s additions to the Entity List further our efforts to decisively restrict access to advanced technologies in furtherance of U.S. national security requirements.”
“Our new end-use check policy requiring the timely completion of end-use checks by host governments to avoid placement on our Unverified and Entity Lists is yielding results,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod.
“When a host government facilitates a check that results in our ability to confirm a company’s bona fides, the company comes off the Unverified List, as demonstrated by today’s 25 removals of Chinese companies from our restricted party lists. But when a host government persists in preventing a check, there are real consequences, as demonstrated by today’s addition of 9 Russian parties to the Entity List.”
The 36 entities added to the Entity List under the first rule are: Anhui Cambricon Information Technology Co., Ltd.; Cambricon (Hong Kong) Co., Ltd.; Cambricon (Kunshan) Information Technology Co., Ltd.; Cambricon Jixingge (Nanjing) Technology Co., Ltd.; Cambricon (Nanjing) Information Technology Co., Ltd.; Cambricon Technologies Corporation Limited; Cambricon (Xi’an) Integrated Circuit Co., Ltd.; CETC Cloud (Beijing) Technology Co., Ltd.; CETC LES Information System Group Co., Ltd.; China Electronics Technology Group Corporation No. 28 Institute; Chinese Academy of Sciences Institute of Computing Technology; Guangdong Qinzhi Technology Research Institute Co., Ltd.; Key Laboratory of Information Systems Engineering; Nanjing Aixi Information Technology Co., Ltd.; Nanjing LES Cybersecurity and Information Technology Research Institute Co., Ltd.; Nanjing LES Electronic Equipment Co., Ltd.; Nanjing LES Information Technology Co., Ltd.; Shanghai Cambricon Information Technology Co., Ltd.; Suzhou Cambricon Information Technology Co., Ltd.; System Equipment Co., Ltd. of the 28th Research Institute (Liyang); and Xiong’an Cambricon Technology Co., Ltd.
Additional information on the Entity List is available on BIS’s website at: https://bis.doc.gov/index.php/policyguidance/faqs. For more information, visit www.bis.doc.gov.
