On June 5, 2020, the US Commerce Department’s Bureau of Industry and Security (“BIS”) published: (1) a final rule adding nine Chinese entities to the Entity List (the “XUAR Designees”), and (2) a final rule adding twenty four entities located in China, Hong Kong, and the Cayman Islands to the Entity List (the “Military Designees”).
Both sets of designations were announced by the Commerce Department on May 22, 2020 (see announcements here and here), but their designations are effective as of their publication in the Federal Register (June 5, 2020). The addition of the Military Designees to the Entity List follows BIS’ recent interim final rule amending the end user/end use requirements in the Export Administration Regulations (the “EAR”) and reflects the same concern surrounding civil and military integration in China (our blog post on this development is available here). However, the recent expansion of the “foreign-produced direct product rule” for Huawei (described in our blog post) does not apply to these newly designated entities.
The XUAR Designees
The nine XUAR Designees have been designated in connection with the US Government’s concerns over their alleged involvement in human rights violations and abuses in the Xinjiang Uighur Autonomous Region (XUAR) region. These designations build on the previous additions to the Entity List in October 2019 involving 28 parties identified by the US Government as engaged in the XUAR repression campaign in Xinjiang.
For the nine XUAR Designees, BIS has imposed a license requirement for all items subject to the EAR, with a case-by-case policy of review for items classified under Export Control Classification Numbers (“ECCNs”) 1A004.c, 1A004.d, 1A995, 1A999.a, 1D003, 2A983, 2D983, 2E983, and EAR99 items described in the Note to ECCN 1A995 (items for protection against chemical or biological agents that are consumer goods, packaged for retail sale or personal use, or medical products). A license review policy of presumption of denial applies for all other items subject to the EAR. No license exceptions are available for exports, reexports, or transfers to the XUAR Designees. Notably, these license requirements will apply not only to transactions in which items are to be exported, reexported, or transferred (in country) to any of these entities, but also to transactions in which such entities act as purchaser, intermediate consignee, ultimate consignee, or end user.
The nine XUAR Designees are:
- Aksu Huafu Textiles Co., including two aliases (Akesu Huafu and Aksu Huafu Dyed Melange Yarn);
- CloudWalk Technology, including four aliases (Chongqing Cloudwalk Technology Co., Ltd.; Guangzhou Yunshang Information Technology Co., Ltd.; Yun Cong Information Technology Co. Ltd.; and Yun Cong Technology);
- FiberHome Technologies Group, including eight aliases (FiberHome; FiberHome International Technology Co., Ltd., FiberHome Networks; FiberHome Networks Co. Ltd.; FiberHome Telecommunication Technologies Co., Ltd.; Haohuo Xiangyun Network Technology Co., Ltd.; Wuhan Fiberhome International; and Wuhan Institute of Posts and Telecommunications);
- Intellifusion, including two aliases (Shenzhen Yuntian Lifei Technology Co., Ltd. and Yuntian Lifei);
- IS’Vision, including six aliases (Chengdu Yinchen Netcom Technology Co., Ltd; Isvision Tech; Isvision Technologies Co., Ltd.; Shanghai Is’vision Co.; Shanghai Isvision Technologies Co., Ltd.; and Yinchen Technology);
- Ministry of Public Security’s Institute of Forensic Science of China, including two aliases (Forensic Identification Center of the Ministry of Public Security of the People’s Republic of China and Material Identification Center of the Ministry of Public Security of the People’s Republic of China);
- Nanjing FiberHome Starrysky Communication Development Co., including two aliases (Fiberhome StarrySky Co., Ltd. and Nanjing Fenghuo Xingkong Communication Development);
- NetPosa, including three aliases (Dongfang Netpower Technology Co.; Dongfang Wangli Technology; and NetPosa Technologies Ltd.); and
- SenseNets, including six aliases (Deep Net Vision; Deep Network Vision; Sensenets Corporation; Shenzhen Net Vision; Shenzhen Shenwang Vision Technology Co., Ltd.; and Shenzhen Vision).
The Military Designees
The Military Designees have been designated as a result of the US Government’s determination that they engaged in activities contrary to US national security. The list of the Military Designees is provided below. BIS has imposed a license requirement for exports, reexports, or transfers of all items subject to the EAR for all 24 entities, subject to a license review policy of a presumption of denial. In addition, no license exceptions are available for exports, reexports, or transfers (in-country) to the persons being added to the Entity List in this rule.
The 24 Military Designees are:
- Beijing Cloudmind Technology Co., Ltd.;
- Beijing Computational Science Research Center;
- Beijing Jincheng Huanyu Electronics Co., Ltd.;
- Center for High Pressure Science and Technology Advanced Research;
- Chengdu Fine Optical Engineering Research Center;
- China Jiuyuan Trading Corporation;
- Harbin Chuangyue Technology Co. Ltd.;
- Harbin Engineering University;
- Harbin Institute of Technology;
- Harbin Yun Li Da Technology and Development Co., Ltd.;
- Kunhai (Yanjiao) Innovation Research Institute;
- Peac Institute of Multiscale Science;
- Qihoo 360 Technology Company;
- Shanghai Nova Instruments Co., Ltd.;
- Sichuan Dingcheng Material Trade Co., Ltd.;
- Sichuan Haitian New Technology Group Co., Ltd.;
- Sichuan Zhonghe Import and Export Trade Co., Ltd.;
- Skyeye Laser Technology Limited;
- Zhu Jiejin;
- Cloudminds (Hong Kong) Limited;
- JCN (HK Technology Co., Ltd.;
- K Logistics (China) Limited;
- Cloudminds Inc.; and
- Qihoo 360 Technology Co. Ltd.