WASHINGTON, D.C. – Today, the Commerce Department’s Bureau of Industry and Security (BIS) is adding 43 entities under 50 entries to the Entity List, further protecting U.S. national security and foreign policy interests.

Each of the 43 entities being added to the Entity List have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. These entries are listed under the destinations of China (31), Kenya (1), Laos (1), Malaysia (1), Pakistan (4), Singapore (1), South Africa (3), Thailand (1), the United Arab Emirates (5), and the United Kingdom (2). This rule also removes one entity from the Entity List under the destination of Latvia.

“The Entity List is one of the most powerful policy tools we have at our disposal,” said Deputy Secretary of Commerce Don Graves. “Controlling how U.S. technology is used around the globe, and by whom, is the foremost national security priority for the Department of Commerce.”

“Preventing advanced technologies from being used as part of China’s civil-military fusion strategy and threatening U.S. national security is our top priority,” said Under Secretary of Commerce for Industry and Security Alan Estevez. “Today’s actions are an important step in that effort.”

“We continue to send a clear message that we will use our tools to protect national security and human rights,” said Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler. “We are committed to preventing the PRC from accessing advanced technologies to enhance their military modernization and commit human rights violations.”

Multiple entities have been added for recruiting Western pilots to train PLA pilots on Western aircraft maneuvers and tactics, for hypersonic weapons development, hypersonic flight modeling, and weapon lifecycle management using Western software.

“It is imperative that we prevent China from acquiring U.S. technologies and know-how to enable their military modernization programs,” said Matthew S. Axelrod, Assistant Secretary for Export Enforcement. “And that’s why, today, we’re adding parties tied to China’s hypersonics, naval modernization, and military pilot training programs to our Entity List.”

The text of Additions of Entities to the Entity List and Removal of Entity from the Entity List, which includes the complete list of entities, is available on the Federal Register’s website here (link). The effective date for the rule is June 12, 2023. As a reminder, the Entity List is not intended for use as a sanction against any particular country or government. This is particularly true for close U.S. allies, such as those identified in supplement no. 3 to part 746 or in Country Groups A:5 or A:6 in supplement no. 1 to part 740 of the EAR. Additional information on the Entity List is available on BIS’s website at: https://bis.doc.gov/index.php/policy-guidance/faqs

Additional Background on Today’s Actions

The Commerce Department’s action targets listed entities’ ability to access commodities, software, and technology subject to the EAR. The rule imposes a license requirement for all items subject to the EAR. License applications for the export, reexport, or transfer (in-country) of these items will be reviewed according to the license review policy column of the entries on the Entity List and will generally be subject to a presumption of denial. Additional information on the entities is below:

• Aviation Industry Corporation of China 612 Institute; Beijing Iwintall Technology Co. Ltd.; Beijing Transemic Technology Co., Ltd.; Beijing Transemic Information Technology Co., Ltd.; China Aviation Development Harbin Bearing Co., Ltd.; Luoyang Institute of Science and Technology, Opturn Co., Ltd.; and Pera Global were added to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China’s military modernization. These entities have demonstrable ties to activities of concern, including hypersonic weapons development, design and manufacture of air-to-air missiles, hypersonic flight modeling, and weapon lifecycle management using Western software.
• Shanghai Supercomputing Technology Co., Ltd. was added to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China’s military modernization. This entity has supported the operation of supercomputers located in the PRC, specifically by offering cloud-based supercomputing capabilities to support hypersonics research. This entity is also given a footnote 4 designation, which means that “items subject to the EAR” for the purpose of these license requirements include foreign-produced items that are subject to the EAR pursuant to § 734.9(e)(2) of the EAR.
• Beijing Ryan Wende Science and Technology Co., Ltd. (Beijing Ryan) and Xinjiang Kehua Hechang Biological Science and Technology Co., Ltd. (Xinjiang Kehua) were added to the Entity List for procuring and supplying items subject to the EAR that enable the Chinese government to carry out human rights abuses against individuals in China. Specifically, Beijing Ryan procures and distributes items subject to the EAR, including mobile phone inspection software, fingerprint analysis technology, biostatistics software, and DNA testing items to Public Security Bureaus (PSBs) throughout China. Xinjiang Kehua procures and distributes biotechnology items subject to the EAR to the Xinjiang Production and Construction Corps (XPCC), an entity designated on the Entity List and on the Office of Foreign Assets Control’s List of Specially Designated Nationals and Blocked Persons, and to PSBs in Xinjiang. The distribution of these items to XPCC and the PSBs enables China to carry out human rights abuses against individuals in China, including as part of its campaign of repression against Uyghur Muslims and members of other minority groups in Xinjiang.
• Affiliates International and Changzhou Utek Composite Co., Ltd. were added to the Entity List based on their contributions to Pakistan’s ballistic missile program.
• Beijing Luo Luo Technology Development Co., Ltd.; General Technology Limited; Tiger Force Electronics Limited; and Universal Enterprise Limited were added to the Entity List based on their contributions to Pakistan’s ballistic missile program.
• Qianpu Technology Co., Ltd.,Quantum Logix (Private) Limited and Imminent Engineering Co., Ltd. were added to the Entity List based on information that these entities significantly contribute to certain advanced conventional weapons and strategic weapons capabilities in Pakistan.
• Belt Consulting Co., Ltd.; New Faith Enterprise Investment Limited; Shanghai Breeze Technology Co., Ltd.; Shanghai Breeze Technology Jiangsu Co, Ltd.; Shanghai Shark Sprite Technology Co., Ltd.; and United Vision Limited were added to the Entity List because they have been implicated in a conspiracy to violate U.S. export controls, including a scheme to supply the Chinese People’s Liberation Army – Navy with U.S. military grade vessels and equipment.

Additional Background on the Entity List Process

These BIS actions were taken under the authority of the Export Control Reform Act of 2018 and its implementing regulations, the Export Administration Regulations (EAR).

The Entity List (supplement no. 4 to part 744 of the EAR) identifies entities for which there is reasonable cause to believe, based on specific and articulable facts, that the entities—including businesses, research institutions, government and private organizations, individuals, and other types of legal persons—that have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States. Parties on the Entity List are subject to individual licensing requirements and policies supplemental to those found elsewhere in the EAR.

Entity List additions are determined by the interagency End-User Review Committee (ERC), comprised of the Departments of Commerce (Chair), Defense, State, Energy, and where appropriate, the Treasury.

The ERC makes decisions regarding additions to, removals from, or other modifications to the Entity List. The ERC makes all decisions to add an entity to the Entity List by majority vote and makes all decisions to remove or modify an entity by unanimous vote.

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