US restricts trade access to 14 Chinese entities for actions in Xinjiang
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US restricts trade access to 14 Chinese entities for actions in Xinjiang

The US Department of Commerce announced Friday that it had added 34 entities to its Entity List over concerns regarding global human rights. Of those 34 firms, 14 were specifically designated as being involved in potential human rights abuses in Xinjiang.

Unlike the Department of Treasury’s Specially Designated Nationals (SDN) list, addition to the Department of Commerce’s Entity List does not constitute a full sanction and prohibition on doing business with US persons. Rather, persons on the entity list are prohibited from being sold goods covered by the Export Administration Regulations (EAR).

The Chinese telecommunications company Huawei was placed on this list in 2019, which caused Huawei to stockpile about two years worth of EAR-covered products, including computer chips and telecommunications equipment. EAR products generally concern national security interests and includes products that could be used in the manufacture of nuclear weapons, but has also expanded to include other justifications, such as potential human rights abuses.

This designation does not completely prevent US persons from trading with designated entities, but the export of any EAR-covered items will require a license from the Department of Commerce’s Bureau of Industry and Security going forward.

The addition to the entity list includes Xinjiang Beidou Tongchuang Information Technology Co; the China Academy of Electronics and Information Technology; Suzhou Keda Technology Co; Xinjiang Lianhai Chuangzhi Information Technology Co; Shenzhen Cobber Information Technology Co; Xinjiang Sailing Information Technology; Beijing Geling Shentong Information Technology; Shenzhen Hua’antai Intelligent Technology Co; and Chengdu Xiwu Security System Alliance Co.