The Biden administration is actively exploring adding additional Chinese firms to the government’s economic blacklist, according to US Commerce Secretary Gina Raimondo, as it investigates what it considers China’s efforts to avoid US sanctions.
Access to U.S. exports is restricted by the Commerce Department’s Entity List.
According to Raimondo, the administration is seeking to “gather information on problematic actors in China and add those companies to the Entity List… We’re currently doing a variety of investigations.”
“I don’t see us lifting sanctions anytime soon,” she continued.
She stated that China is not at a standstill. “They’re coming up with new ways to get around our penalties, such as forming new (businesses) and so on.” We are making a concerted and vigilant effort.
She stated that she would like to work with US allies to align their trade restrictions with US export controls whenever possible.
In 2019, the Trump administration made extensive use of the Entity List, adding dozens of Chinese firms to the list, including Huawei (HWT.UL). In 2020, it will also include chipmaker SMIC (0981.HK) and Chinese drone producer DJI.
The Biden administration has expanded this approach, placing a dozen Chinese corporations on the Entity List in November over national security and foreign policy concerns, claiming their assistance in strengthening China’s quantum computing initiatives in some cases.
China’s Academy of Military Medical Sciences and its 11 research centres were added to the Entity List by Commerce in December.
Apple Inc (AAPL.O) is reportedly considering relocating some production out of China, according to Raimondo. “I’ve heard the same thing from a lot of other American manufacturing companies,” she continued, “many of whom have been manufacturing in China for decades.”
The Commerce Department added 33 Chinese firms to its “unverified list” in February, requiring U.S. exporters to go through additional steps before sending goods to the entities.
Last year, China’s embassy in Washington said the US “abuses state power to prohibit and limit Chinese firms in all possible ways,” citing the “catch-all notion of national security.”
