China Publishes Management Measures for Unreliable Foreign Entities

Posted by Jeffrey Nie on 9/22/20 5:00 PM

On September 19, 2020, the People’s Republic of China Ministry of Commerce (MOC) officially published Provisions on the Unreliable Entity List, Order No. 4 of 2020. The provisions are formulated under the Foreign Trade Law, the National Security Law, and other laws of the People’s Republic of China to “safeguard national sovereignty, security, and development interests, maintaining fair and free international economic and trade.” This regulation mandates the establishment of a mechanism to take actions in response to foreign entities that:

  • Endanger China's national sovereignty, security, and development interests; or
  • Suspend normal transactions with, or apply discriminatory measures against, a Chinese enterprise, organization, or individual, which violate normal market transaction principles and causes serious damage to their legitimate rights.

Following an investigation, the actions that can be taken include, but are not limited to:

  • Restricting that entity’s trade activities relating to China;
  • Restricting that entity’s investment in China;
  • Restricting that entity’s personnel from entering China;
  • Restricting or revoking permits for travel, work, and residence in China for that entity’s personnel; and
  • Imposing fines.

This regulation is effective immediately.

The original Chinese announcement can be found here:

The English translation of the Provisions can be found here:

Topics: China

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