U.S. to Include 37 Chinese Companies on Entity List, including 22 Quantum Entities

With the development of technology, quantum technology has become an international focus due to its immense potential for advancement. On May 9th, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced that 37 entities headquartered in China have been added to the Entity List (EL) for export control. Among them are 22 quantum industry research institutions, which nearly encompass the frontline quantum industry research institutions in China.

The newly added Chinese entities related to quantum technology include the Beijing Institute of Quantum Information Science, the Academy of Quantum Information and Quantum Technology Innovation at the Chinese Academy of Sciences, Origin Quantum, and the Shenzhen Institute of Quantum Science and Engineering.

BIS accuses these 22 quantum research institutions of “acquiring or attempting to acquire U.S. origin items for the development of quantum technology capabilities.” They stated that these entities play a key role in advancing the Communist Party of China’s quantum technology capabilities, especially in military applications, posing a “serious threat to U.S. national security.”

The sanctions imposed by BIS on China’s quantum technology sector this time are unprecedented in terms of the extent and intensity of regulatory measures. The South China Morning Post, a publication under Alibaba, quoted a Chinese scientist who requested anonymity on Saturday (May 11th), stating that “almost all laboratories involved in quantum research related to the (Communist Party) have been included in the list.”

This is the second time the U.S. government has put Chinese quantum information technology on the Entity List. In November 2021, the U.S. first included 12 Chinese quantum technology entities in the export control list, expressing concerns about the development of Chinese quantum technology and fearing that advanced U.S. technology could be used to support military applications of China’s quantum computing.

On Monday last week (May 6th), U.S. Secretary of State Antony Blinken emphasized the importance of quantum technology in his speech on “The Transformation of Technology and U.S. Diplomacy,” listing quantum technology as one of the six most critical foundational technologies affecting U.S. national competitiveness and security.

According to a press release from BIS issued on Thursday, Alan Estevez, Deputy Secretary of Commerce responsible for export control, emphasized that “today’s measures are decisive actions to address the challenges posed by China (Communist Party) and its modernization of military capabilities.”

Thea D. Rozman Kendler, Assistant Secretary of Commerce for Export Administration, stated that these measures also reflect the efforts of the Department of Commerce and Department of Justice’s collaborative establishment of the “Disruptive Technology Strike Force.” The strike force is an interagency export control enforcement unit aimed at preventing the leakage of advanced technologies, including quantum technology, to U.S. adversaries.

The “Entities List” is an export control regulation established by the U.S. government to maintain its national security interests, aiming to restrict “organizations and individuals engaged or likely to engage in activities that pose a threat to U.S. national security or foreign policy interests from acquiring sensitive technologies.” Once entities are listed, U.S. suppliers are prohibited from exporting critical technologies and products to them.

In addition, other entities involved in the Communist Party’s nuclear program and the export of military drones to Russia have also been included in the list of entities subject to export control of goods. Since the Biden administration took office, the U.S. Department of Commerce has added 355 Chinese entities to the EL, the highest number under any U.S. government to date.