On March 25, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”)  released two final rules that announced the addition of 80 new entities to the Entity List (see BIS press release here). In its press release, BIS officials stated that the Entity List is only one of the powerful tools at their disposal, signaling the likelihood of more actions under BIS’ regulatory authorities.

The two BIS’ final rules are among BIS’ first regulatory actions, and take effect immediately, adding 12 entities to the Entity List: 11 under the destination of China and one under the destination of Taiwan. The newly added entities include six subsidiaries of a leading Chinese cloud computing and big data service provider whose parent entity was added to the Entity List in 2023, four entities supporting a major Chinese server manufacturer designated on the Entity List in 2019 for building supercomputers, and two Chinese AI and advanced computing chips companies that supported Chinese military modernization. All the entities added under this rule include a footnote 4 designation, which means that these entities are now subject to the Entity List Foreign Direct Product (FDP) Rule (see § 734.9(e)(2) of the Export Administration Regulations (EAR)), and the scope of items restricted for export, reexport, or transfer to them is even broader. This rule is effective as of March 25, 2025.

The second final rule added 68 new entities to the Entity List: 42 under the destination of China, 19 under Pakistan, four under the UAE, three under South Africa, and two under Iran (two entities have China and Iran addresses). The final rule also modified four existing entities. All exports to these entities of items “subject to the EAR” now require a license, and BIS will review these license applications under a either a presumption or policy of denial.

Among the reasons that BIS cited for the addition of the new entities include:

  • Their contributions to Pakistan’s unsafeguarded nuclear activities and ballistic missile program;
  • China’s quantum technology capabilities and military modernization efforts, including training Chinese military forces in South Africa;
  • Iran’s defense industry and unmanned aerial vehicle programs.

This final rule is effective March 28, 2025.

BIS’ addition of these entities to the Entity List signals early national security priorities for the Trump Administration, including: (1) restricting China’s technological advancement; (2) limiting support for China’s military modernization; (3) increasing pressure on Iran; and (4) supporting the nonproliferation of nuclear activities, specifically tied to Pakistan in this case. 

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Photo of Jana del-Cerro Jana del-Cerro

Maria Alejandra (Jana) del-Cerro is a partner in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade and Government Contracts groups. She advises clients with respect to the U.S. regulation of outbound trade, including U.S. export controls. Jana

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Maria Alejandra (Jana) del-Cerro is a partner in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade and Government Contracts groups. She advises clients with respect to the U.S. regulation of outbound trade, including U.S. export controls. Jana works with clients across a broad range of industries, from traditional aerospace and defense manufacturers and multi-national software companies, to start-ups in the technology sector, and she regularly represents them before the Departments of State, Commerce, and Treasury in responding to government inquiries, conducting internal reviews, and in compliance investigations and voluntary disclosures.

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Recognized as a “Rising Star” in International Trade by Super Lawyers, Jeremy Iloulian advises clients globally on complex cross-border regulatory, compliance, investigative, and transactional matters and policy developments that touch U.S. national security, international trade, and foreign investment, including those relating to

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Recognized as a “Rising Star” in International Trade by Super Lawyers, Jeremy Iloulian advises clients globally on complex cross-border regulatory, compliance, investigative, and transactional matters and policy developments that touch U.S. national security, international trade, and foreign investment, including those relating to U.S. export controls (EAR and ITAR), economic sanctions, anti-boycott laws, the Committee on Foreign Investment in the United States (CFIUS), and various national security controls on fundamental research and supply chains.

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Ivy Xun is an international trade analyst in Crowell & Moring’s Washington, D.C. office. She provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative and U.S. Customs and Border Protection. She…

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