The US Tightens Export Controls, Targeting China

On August 1, 2018, the US Department of Commerce Bureau of Industry and Security (BIS) published a Federal Register notice stating that the US government had identified 44 Chinese companies as acting contrary to US national security and foreign policy interests.¹ As a result, BIS has added these companies to the "Entity List" of the Export Administration Regulations (EAR), which already includes approximately 90 other Chinese entities.² This action means that the export, re-export and transfer of US-origin goods, software and technology to these entities will now be subject to additional licensing requirements and a general policy of denial for any such export license applications. It also means that no license exceptions under the EAR will be available for transactions with these Chinese companies.