BIS Adds Chinese Entities to Entity List for Links to Quantum, Shipping to Russia

The Bureau of Industry and Security this week added 37 Chinese technology companies, manufacturing firms, research institutions and others to the Entity List for trying to acquire U.S.-export controlled items for China’s military or quantum technology capabilities, shipping controlled items to Russia, or for their ties to a “High Altitude Balloon” that the U.S. shot down last year.

The Entity List additions, outlined in a final rule that was released and took effect May 9, will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial.

BIS Undersecretary Alan Estevez called the Entity Listings a "decisive step in addressing challenges posed" by China. “We must remain vigilant in our efforts to prevent entities such as these from accessing U.S. technologies that could be used in ways that harm our national security," he said.

BIS added 22 of the entities for trying to buy U.S.-origin items to help China’s quantum technology capabilities, “which has serious ramifications for U.S. national security given the military applications of quantum technologies,” the agency said.

The entities added for their involvement in shipping export controlled items to Russia include AEE Shenzhen Yidian Aviation Technology Co., Ltd.; Beijing Zhongshang Dingsheng Mechanical and Electrical Equipment Co.; Ltd., Shenzhen Yidian Technology Co., Ltd.; CSIC Pride (Nanjing) Cryogenic Technology Co., Ltd.; China Electronics Technology Group Corporation 45th Research Institute; and Ceyear Technologies Co., Ltd.

BIS added others for trying to acquire U.S.-export controlled items used in unmanned aerial vehicles for China’s military, while others were added for their support of China’s nuclear program. Eleven of the entities were added either for their “support” of the Chinese spy balloon shot down by the U.S. in 2023 (see 2306290071) or for their “connections to companies that support China’s High Altitude Balloon program.”

All exports that now require a license as a result of this rule but were aboard a carrier to a port as of May 9 may proceed to their destinations under the previous eligibility as long as the items are exported before June 10, BIS said. Any items not exported before midnight June 10 will require a license.