China lists U.S. companies as unreliable entities over arms sales to Taiwan region

BEIJING: The Chinese Ministry of Commerce on Monday added several U.S. companies to the Unreliable Entity List over their involvement in arms sales to China’s Taiwan region.

The companies include General Atomics Aeronautical Systems, General Dynamics Land Systems and Boeing Defense, Space & Security. They will be barred from engaging in China-related import or export activities, and are forbidden from making new investments in China, according to the announcement.

Senior executives from the companies are prohibited from entering China, their work permits will be revoked, along with their visitor and residential status, and any related applications they submit will not be approved, according to the announcement.

“Such measures are being taken to safeguard China’s national sovereignty, security and development interests,” it said.

The ministry also said there was evidence that Caplugs of the United States circumvented the unreliable entities list regulations by transferring goods purchased from China to the unreliable entities.

The ministry urged Caplugs to take measures as soon as possible to ensure that all relevant goods, technologies and services purchased from China are not transferred to the unreliable entities, and that relevant evidentiary material be submitted to the office of the unreliable entities list as per the working mechanism.

Otherwise, the ministry said, the office will take measures against it in accordance with the laws and regulations.

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