On Monday, July 20, 2020, the Commerce Department announced that the Bureau of Industry and Security (BIS) added 11 Chinese companies to the Entity List. The move comes in response to numerous reports of human rights violations committed by these companies in conjunction with the People’s Republic of China, including “mass arbitrary detention, forced labor, involuntary collection of biometric data, and genetic analyses targeted at Muslim minority groups from the Xinjiang Uyghur Autonomous Region.”
The addition of these companies to the Entity List adds imposes restrictions on their access to U.S.-origin items and technology. These companies now face heightened restrictions under the Export Administration Regulations, and entities looking to do business with these companies will likely need to apply for a license. Many predict these sanctions will have a significant impact on several U.S. companies, including Apple and Tommy Hilfiger, as some of their suppliers are among the newly-sanctioned companies.
The companies added to the Entity List are:
- Changji Esquel Textile Co. Ltd.
- Hefei Bitland Information Technology Co. Ltd.
- Hefei Meiling Co. Ltd.
- Hetian Haolin Hair Accessories Co. Ltd.
- KTK Group
- Nanjing Synergy Textiles Co. Ltd.
- Nanchang O-Film Tech
- Tanyuan Technology Co. Ltd.
- Xinjiang Silk Road BGI
- Beijing Liuhe BGI
For help navigating this and other international trade regulations, contact us at Sequoia Legal.