US Imposes Trade Restriction On Chinese, Russian, Pak Technology Firms

The United States has added 27 foreign entities and individuals, including a dozen Chinese companies, to its restricted trade list for engaging in activities that are contrary to the U.S. national security or foreign policy interests.

Eight China-based technology fifrms are being added to the list as part of the Department of Commerce’s efforts to prevent China from using U.S. emerging technologies for its quantum computing efforts that support military applications, such as counter-stealth and counter-submarine applications, and the ability to break encryption or develop unbreakable encryption. These companies support the military modernization of China’s People’s Liberation Army and/or acquire and attempt to acquire U.S. origin-items in support of military applications. The blacklisted companies will be restricted from exporting electronic products that support the PLA’s military modernization efforts.

Sixteen entities and individuals operating in China and Pakistan were added to the Entity List based on their contributions to Pakistan’s unsafeguarded nuclear activities or ballistic missile program.

Three affiliates of China’s Corad Technology Limited have been added to the Entity List due to their involvement in sales of technology from the United States and other Western nations to Iran’s military and space programs, North Korea front companies, and Chinese government and defense industry subordinate entities.

The Commerce Department’s Bureau of Industry and Security (BIS) has also added the Moscow Institute of Physics and Technology to the Military End User List on the basis of its production of military products for a military end-user.

For the companies added to the Entity List, the U.S Government imposes a license requirement that applies to all items subject to the EAR. In addition, no license exceptions are available for exports, reexports, or in-country transfers to the firms added to the Entity List.

Potential suppliers to firms on the list will now need to apply for a license before they can sell to them. Such applications are likely to be denied permission, reports say.

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