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BIS Adds 7 Chinese Supercomputing Entities to Entity List

April 9, 2021 by Ian Cohen|Top News

The Bureau of Industry and Security added seven Chinese entities to the Entity List for procuring U.S.-origin items in a way that harms U.S. national security, BIS said in an April 8 final rule. The seven “supercomputing entities” also support China’s military and help it develop modern weapons, the Commerce Department said.

“Supercomputing capabilities are vital for the development of many -- perhaps almost all -- modern weapons and national security stems, such as nuclear weapons and hypersonic weapons,” Commerce Secretary Gina Raimondo said in a statement. The agency will use “the full extent of its authorities to prevent China from leveraging U.S. technologies to support these destabilizing military modernization efforts.”

The rule, which took effect April 8, imposes a license requirement for all items subject to the Export Administration Regulations. BIS will impose a license review policy of presumption of denial and said no license exceptions will be available.

All exports, reexports and transfers that now require a license as a result of the increased export restrictions that were aboard a carrier to a port as of April 8 may proceed to their destinations under the previous eligibility, BIS said.

Some entities refer to themselves as supercomputing hubs used to bolster Chinese investments in computing technology. The website of one entity, National Supercomputing Center Shenzhen, describes the company as a “major scientific and technological infrastructure project” and helps improve China’s “international competitiveness.” Another entity, the National Supercomputer Center Zhengzhou, was completed last year to serve “as a new driver for the country's innovation,” Xinhua, China’s state-run news agency, said in a November report.

The five other entities are: