On July 9, 2021, The Department of Commerce (DOC) determined that 23 Chinese companies took actions contrary to the foreign policy interests of the United States and were added to the Entities List. The Bureau of Industry and Security (BIS) noted that it “publishes the names of certain foreign persons – including businesses, research institutions, government and private organizations, individuals, and other types of legal persons – that are subject to specific license requirements for the export, re-export and/or transfer (in-country) of specified items.” The BIS also notes that “These persons comprise the Entity List, which is found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR).”

Of the 23 companies added to the list, 14 were accused of direct involvement in human rights abuses in Xinjiang, 4 of supporting the Chinese military’s modernization programs, 4 of violating U.S. sanctions, and 1 of procurement of U.S.-origin items for unauthorized military end-use. The list below, as outlined by the July 12, 2021, BIS rule highlights the additions:

The End-User Review Committee (ERC) added the following 14 entities to the Entity List for being implicated in human rights violations and abuses in the implementation of China’s campaign of repression, mass detention, and high-technology surveillance against Uyghurs, Kazakhs, and other members of Muslim minority groups in the Xinjiang Uyghur Autonomous Region (XUAR).

  1. China Academy of Electronics and Information Technology
  2. Xinjiang Lianhai Chuangzhi Information Technology Co., Ltd.
  3. Leon Technology Co., Ltd.
  4. Xinjiang Tangli Technology Co., Ltd.
  5. Shenzhen Cobber Information Technology Co., Ltd.
  6. Xinjiang Sailing Information Technology Co., Ltd.
  7. Beijing Geling Shentong Information Technology Co., Ltd.
  8. Tongfang R.I.A. Co., Ltd.
  9. Shenzhen Hua’antai Intelligent Technology Co., Ltd.
  10. Chengdu Xiwu Security System Alliance Co., Ltd.
  11. Beijing Sinonet Science & Technology Co., Ltd.
  12. Urumqi Tianyao Weiye Information Technology Service Co., Ltd.
  13. Suzhou Keda Technology Co., Ltd.
  14. Xinjiang Beidou Tongchuang Information Technology Co., Ltd.

The ERC added the following 4 companies to the Entity List for activities related to acquiring or attempting to acquire U.S.-origin items in support of military modernization for the People’s Liberation Army.

  1. Hangzhou Hualan Microelectronics Co., Ltd.
  2. Kyland Technology Co., Ltd.
  3. Kyland subsidiary Armyfly
  4. Kyland subsidiary Kindroid

The ERC added the following 4 companies to the Entity List for exporting or attempting to export items subject to the EAR to an entity on the U.S. Department of the Treasury’s Office of Foreign Asset Control Specially-Designated Nationals List without the necessary licenses.

  1. Beijing Hileed Solutions Co., Ltd.;
  2. Beijing E-Science Co., Ltd.;
  3. Info Rank Technologies; and
  4. Wingel Zhang

The ERC added the following company to the Entity List for exporting or attempting to export items subject to the EAR related to the procurement of U.S.-origin items for unauthorized military end-use.

  1. Wuhan Raycus Fiber Laser Technologies Co., Ltd.

A full copy of the federal register notice is available here.

For more information on actions addressing human rights, forced labor abuses, and export controls, contact our team and see previous posts below.

Forced Labor/U.K. Modern Slavery Act Archives | International Trade Law (cmtradelaw.com)

Xinjiang Archives | International Trade Law (cmtradelaw.com)

Bureau of Industry and Security (BIS) Archives | International Trade Law (cmtradelaw.com)

Export Administration Regulations (EAR) Archives | International Trade Law (cmtradelaw.com)

Export Controls Archives | International Trade Law (cmtradelaw.com)

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Photo of Frances P. Hadfield Frances P. Hadfield

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving…

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving customs compliance, audits, customs enforcement, as well as import penalties.

Frances represents clients before the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, as well as in proceedings at the administrative level. She advises corporations on both substantive federal and state regulatory issues that involve U.S. Customs and Border Protection, the Federal Trade Commission, Food and Drug Administration, and U.S. Fish & Wildlife in matters pertaining to product admissibility, audits, classification, import restrictions, investigations, marking, licenses, origin, penalties, and tariff preference programs.

Photo of Chandler Leonard Chandler Leonard

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce…

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce, State, and Treasury. Chandler has experience analyzing and advising U.S. and non-U.S. companies with respect to proposed transfers of U.S. origin technology, software, hardware, and services. She has performed jurisdictional and classification analyses under the ITAR and EAR, including drafting Commodity Jurisdiction requests and CJ Reconsideration requests. She assists in developing and/or reviewing U.S. export and sanctions compliance programs, including risk assessments. Chandler also has experience training a wide variety of audiences, both U.S. and foreign, on compliance with U.S. export control and sanctions requirements.

Photo of Edward Goetz Edward Goetz

Edward Goetz is the manager for International Trade Services in Crowell & Moring’s Washington, D.C. office. Edward leads the firm’s international trade analysts providing practice support to the International Trade Group in the areas of customs regulations, trade remedies, trade policy, export control…

Edward Goetz is the manager for International Trade Services in Crowell & Moring’s Washington, D.C. office. Edward leads the firm’s international trade analysts providing practice support to the International Trade Group in the areas of customs regulations, trade remedies, trade policy, export control, economic sanctions, anti-money laundering (AML), anti-corruption/anti-bribery, and antiboycott. He has extensive government experience providing information and interpretive guidance on the International Traffic in Arms Regulations (ITAR) concerning the export of defense articles, defense services, and related technical data. He also assists attorneys with matters involving the Export Administration Regulations (EAR), economic sanctions, AML, anti-corruption/anti-bribery, and trade remedies.

Photo of John Brew John Brew

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations…

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations on matters involving customs administration, enforcement, compliance, litigation, legislation and policy.

John represents clients in proceedings at the administrative and judicial levels, as well as before Congress and the international bureaucracies that handle customs and trade matters. He advises clients on all substantive import regulatory issues handled by U.S. Customs and Border Protection and Immigration and Customs Enforcement, such as classification, valuation, origin, marking, tariff preference programs, other agency regulations, admissibility, import restrictions, quotas, drawback, audits, prior disclosures, penalties, investigations, Importer Self Assessment and Customs-Trade Partnership Against Terrorism programs, importations under bond, the Jones Act, vessel repairs, and foreign trade zone matters.