BIS Adds 5 Chinese Companies to Entity List for Forced Labor Concerns

The Bureau of Industry and Security added five Chinese companies to the Entity List for their involvement in the government’s human rights abuses against Muslim minority groups in the Xinjiang region, the agency said in a final rule. For each of the entities, BIS will impose a license requirement for all items subject to the Export Administration Regulations. The final rule takes effect June 24.

The five new Entity List entries are Hoshine Silicon Industry (Shanshan) Co., Ltd.; Xinjiang Daqo New Energy, Co. Ltd; Xinjiang East Hope Nonferrous Metals Co. Ltd.; Xinjiang GCL New Energy Material Technology, Co. Ltd; and Xinjiang Production and Construction Corps.

The agency will review case by case certain items classified under several Export Control Classification Numbers, including ECCNs 1A004.c, 1A004.d, 1A995, 1A999.a, 1D003, 2A983, 2D983, 2E983 and items designated EAR99 that are “described in the Note to ECCN 1A995,” BIS said. Those items are used for protection against chemical or biological agents and are “consumer goods, packaged for retail sale or personal use, or medical products.” BIS will also impose a case-by-case review policy for items subject to the EAR that are needed to “detect, identify and treat” infectious diseases, including COVID-19-related equipment. All other exports will be subject to a presumption of denial. No license exceptions will be available.

The End-User Review Committee, which includes officials from the Commerce, State, Defense, Energy and Treasury departments, said all five Chinese companies are “participating in the practice of, accepting, or utilizing” forced labor. The license requirements will improve BIS’s “ability to prevent items subject to the EAR from being used in activities contrary” to U.S. foreign policy interests.

All exports and reexports that now require a license as a result of the Entity List additions and that were aboard a carrier to a port as of June 24 may proceed to their destinations under the previous eligibility, BIS said.