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ARTICLE · 12 JULY 2019

China To Release An "Unreliable Entity List"

On May 31, 2019, China's Ministry of Commerce ("MOFCOM") announced that the Chinese government will soon release an "Unreliable Entity List".

ChinaCorporate/Commercial Law

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

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