Releasing details on the "Unreliable Entity List"

On 19 September 2020, the Regulation on the Unreliable Entity List entered into force, following an announcement by the Ministry of Commerce in May 2019. The Regulation establishes a framework for restrictions or penalties on foreign entities that are considered to endanger the national sovereignty, security, or development interests of China or that seriously harm the legitimate rights and interests of Chinese enterprises, organizations, or individuals. Among others, restrictions and penalties may include prohibitions to trade with Chinese entities or to invest in China.

• Type:

  • Entry and establishment (Approval and admission)
  • Treatment and operation (Operational conditions )

• Industry:

  • Not industry specific

• Sources:

  • Voice of America, China Releases Details on Its Own Unreliable Entity List, https://www.voanews.com/east-asia-pacific/voa-news-china/china-releases-details-its-own-unreliable-entity-list, 22 Sep 2020
  • South China Morning Post, China’s ambiguous Unreliable Entity List gives Beijing ‘leeway’ to take punitive actions against foreign firms, https://www.scmp.com/economy/china-economy/article/3102520/chinas-unreliable-entity-list-gives-beijing-leeway-take, 22 Sep 2020
  • Pillsbury, China’s Ministry of Commerce Publishes “Unreliable Entity List” Provisions, https://www.pillsburylaw.com/en/news-and-insights/china-publishes-unreliable-entity-list.html, 22 Sep 2020