ABSTRACT

China first announced its plan to have its own version of Entity List, that is, the Unreliable Entities List, in May 2019, shortly after the US added Huawei and many of its global affiliates to the US Commerce Department’s Entity List which effectively bars Huawei and its affiliates from receiving US-originated goods, software, and technology as well as certain foreign-produced items that are the direct products of certain US-originated software and technology without a licence. Both the US Entity List and China’s Unreliable Entity List create a legal conundrum for such firms that seek to operate with some targeted companies in the counterparty state. At the heart of the problem is the incongruity between the US and China perspectives on national security in their pursuit of global technological superiority. This chapter, having reviewed the background context, looks to the Entity List mechanism, and raises potential issues surrounding its use.