U.S. Imposes New Sanctions on People’s Republic of China Actors Linked to Malign Activities

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The Chinese Communist Party’s malign activity at home and abroad harms U.S. interests and undermines the sovereignty of our allies and partners.  The United States will use all countermeasures available, including actions to prevent People’s Republic of China (PRC) companies and institutions from exploiting U.S. goods and technologies for malign purposes.  Today’s actions mark yet another sign of our resolve.

The United States is imposing new restrictions on certain entities for activities that undermine our national security and foreign policy interests.  Specifically, the Department of Commerce is adding 59 PRC entities to its export-control Entity List.

Mass Surveillance, Military Modernization, and Human Rights Abuses

The United States is adding four entities to the Entity List for enabling human rights abuses within China by providing DNA-testing materials or high-technology surveillance equipment to the PRC government.  We urge the Chinese Communist Party to respect the human rights of the people of China, including Tibetan Buddhists, Christians, Falun Gong members, Uyghur Muslims, and members of other ethnic and religious minority groups.

Additionally, the Department of Commerce is adding nineteen entities to the Entity List for systematically coordinating and committing more than a dozen instances of theft of trade secrets from U.S. corporations to advance the PRC defense industrial complex; engaging in activities that undermine U.S. efforts to counter illicit trafficking in nuclear and other radioactive materials; or using U.S. exports to support the PLA and PRC defense industrial base, whose ultimate goal is to surpass the capabilities of other countries they view as competitors, particularly the United States.

South China Sea

These new restrictions also impose costs on Beijing’s unlawful campaign of coercion in the South China Sea.  The Department of Commerce is adding 25 shipbuilding research institutes affiliated with the China State Shipbuilding Corporation to the Entity List, as well as six other entities that provide research, development, and manufacturing support for the People’s Liberation Army Navy or attempted to acquire U.S.-origin items in support of PLA programs.  Commerce is also adding five PRC state-owned enterprises, including the China Communications Construction Company, for their role in coercion of South China Sea claimant states.

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Statement from Secretary Ross on The Department’s 77 Additions to the Entity List for Human Rights Abuses, Militarization of the South China Sea and U.S. Trade Secret Theft

Today, the Commerce Department added 77 entities to the Entity List for actions deemed contrary to the national security or foreign policy interest of the United States.  These include entities in China that enable human rights abuses, entities that supported the militarization and unlawful maritime claims in the South China Sea, entities that acquired U.S.-origin items in support of the People’s Liberation Army’s programs, and entities and persons that engaged in the theft of U.S. trade secrets.

Secretary Ross provided the following statement:

“China’s corrupt and bullying behavior both inside and outside its borders harms U.S. national security interests, undermines the sovereignty of our allies and partners, and violates the human rights and dignity of ethnic and religious minority groups.   Commerce will act to ensure that America’s technology—developed and produced according to open and free-market principles—is not used for malign or abusive purposes.

China actively promotes the reprehensible practices of forced labor, DNA collection and ubiquitous surveillance to repress its citizens in Xinjiang and elsewhere.  Over the last two years this administration has added nearly 50 entities to the Entity List for their support for the Chinese Communist Party’s despicable offensive against vulnerable ethnic minorities.  With these new additions, we are applying those principles to the rest of China, including in Tibet, and to the authoritarian regimes to which these practices are being exported.

The additions also include entities that have contributed to China’s militarization of disputed outposts in the South China Sea, unlawful maritime claims in the South China Sea, and intimidation and coercion of other coastal states lawfully accessing and developing offshore marine resources.

Commerce added additional persons participating in China’s campaign of malign technology acquisition efforts, including for theft of U.S. trade secrets, and the support of research and development, and production of advanced weapons systems, in support of the People’s Liberation Army’s destabilizing military modernization efforts.”

Commerce Adds China’s SMIC to the Entity List, Restricting Access to Key Enabling U.S. Technology

The Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) added Semiconductor Manufacturing International Corporation (SMIC) of China to the Entity List.  BIS is taking this action to protect U.S. national security.  This action stems from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex.

“We will not allow advanced U.S. technology to help build the military of an increasingly belligerent adversary.  Between SMIC’s relationships of concern with the military industrial complex, China’s aggressive application of military civil fusion mandates and state-directed subsidies, SMIC perfectly illustrates the risks of China’s leverage of U.S. technology to support its military modernization,” said Commerce Secretary Wilbur Ross.

“Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage U.S. technologies to enable indigenous advanced technology levels to support its destabilizing military activities,” added Ross.

The Entity List designation limits SMIC’s ability to acquire certain U.S. technology by requiring U.S. exporters to apply for a license to sell to the company.  Items uniquely required to produce semiconductors at advanced technology nodes—10 nanometers or below—will be subject to a presumption of denial to prevent such key enabling technology from supporting China’s military-civil fusion efforts.

BIS also added more than sixty other entities to the Entity List for actions deemed contrary to the national security or foreign policy interest of the United States.  These include entities in China that enable human rights abuses, entities that supported the militarization and unlawful maritime claims in the South China Sea, entities that acquired U.S.-origin items in support of the People’s Liberation Army’s programs, and entities and persons that engaged in the theft of U.S. trade secrets.

The Entity List is a tool utilized by BIS to restrict the export, re-export, and transfer (in-country) of items subject to the Export Administration Regulations (EAR) to persons (i.e., individuals, organizations, and companies) reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the United States.  Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited.

BUREAUS AND OFFICES
Bureau of Industry and Security
Source: Department of Commerce

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