The US Department of Commerce Adds 13 Chinese Enterprises to the Entity List

On October 17, 2023, the Bureau of Industry and Security (BIS) of the US Department of Commerce issued an important announcement, deciding to add 13 Chinese companies to its Entity List. Behind this measure is the belief that these companies are involved in the development of advanced computing integrated circuits. This advanced integrated circuit technology is believed to provide artificial intelligence capabilities, which may be used in the development of weapons of mass destruction, advanced weapon systems, and high - tech surveillance applications, thus bringing so - called national security risks.

The impact of this decision is quite far - reaching. According to the US Export Administration Regulations, these 13 companies are specially marked as footnote 4, which means they will be subject to the Foreign Direct Product Rule. US products and technologies under the 18 ECCN codes involved now require special export licenses. However, it is worth noting that the US default policy is to reject the licenses applied for by these companies.

The list of newly added companies to the Entity List is as follows: