REPORT: Commerce Dept. bans Chinese firms from exporting sensitive US technology

MAY 13, 2019

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As the most reliable and balanced news aggregation service on the internet, DML News App offers the following information published by TheHill.com:

The Commerce Department on Monday announced that it is banning six Chinese firms from exporting sensitive U.S. technologies, accusing the companies of attempting to procure commodities from the U.S. to aid groups in Iran and China.

The department said it is placing the six companies on its banned “Entities List,” alongside one Pakistani company and five people from the United Arab Emirates.

The article goes on to state the following:

The companies and people will no longer be able to export “sensitive” U.S. technologies.

Four of the Chinese firms are being accused of attempting to procure commodities from the U.S. to support Iran’s weapons of mass destruction and military programs, a violation of U.S. export rules.

And the other two Chinese companies allegedly helped facilitate the delivery of controlled technology to groups affiliated with China’s armed forces, according to the Commerce Department.

Below is the press released posted on the Commerce Department website:

WASHINGTON – Today, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce announced that it will add 12 foreign entities and individuals to the Bureau’s Entity List. This list contains the names of foreign parties that are subject to specific license requirements for the export, reexport, and/or in-country transfer of controlled items, ensuring that sensitive technologies do not fall into the hands of those who would threaten U.S. national security or American citizens. Organizations or persons who violate these rules – as defined under the Export Administration Regulations – are subject to criminal penalties and administrative sanctions.

In total, the additions include four entities with locations in both China and Hong Kong, and a further two Chinese, one Pakistani, and five Emirati persons.

“The Trump Administration will vigorously defend against any action which could harm American citizens or our nation’s security. We are putting individuals, businesses, and organizations across the world on notice that they will be held accountable for supporting Iran’s WMD activities and other illicit schemes,” said Secretary of Commerce Wilbur Ross. “Moreover, we cannot allow China’s civil-military integration strategy to undermine U.S. national security through prohibited technology transfer plots orchestrated by state actors. This designation complements criminal actions BIS and the Department of Justice are taking to penalize the theft of controlled U.S. technology.”

The four new entities located in both China and Hong Kong attempted to procure U.S.-origin commodities that would have supported Iran’s weapons of mass destruction (WMD) and military programs, in violation of U.S. export controls. Separately, four Emirati persons are included for obtaining U.S.-origin items for an existing entity list member without a license and for a denied party, Mahan Air, which is currently subject to a temporary denial order.

Two other Chinese entities participated in the prohibited export of controlled technology, which was then supplied to organizations affiliated with the People’s Liberation Army. Additionally, one Pakistani company is included on the update for procuring controlled technology on behalf of that country’s unsafeguarded nuclear activities. Another person in the UAE refused to support a BIS end-use check, which is cause for admission to the Entity List.

The Bureau of Industry and Security’s mission is to advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership. BIS is committed to preventing U.S.-origin items from supporting WMD projects or destabilizing military modernization programs. For more information, please visit www.bis.doc.gov

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