On May 31, 2019, China's Ministry of Commerce
("MOFCOM") announced that the Chinese government will
soon release an "Unreliable Entity List"
("UEL") identifying names of foreign companies and
individuals that boycott or cut off supplies to Chinese companies
for non-commercial purposes. Various media reports have suggested
that this measure is intended to respond to recent geopolitical
developments, including the placement of Chinese telecommunications
company Huawei on the U.S. Department of Commerce's Entity
List, and other foreign governments deciding to restrict Huawei
from participating in the provision of 5G wireless service.
MOFCOM will apply a totality of the circumstances test to decide
whether to add a foreign entity to the UEL, including its
conclusions regarding: (i) the specific discriminatory measures
taken by the foreign entity against Chinese companies; (ii) the
purpose of these measures; (iii) whether the measures caused
serious harm to Chinese