US Department of Commerce Implements Strict Export Controls on 11 Chinese Entities

The United States government’s Federal Register displayed on Friday, January 3rd, announced that the Bureau of Industry and Security (BIS) under the Department of Commerce has revised the Export Administration Regulations (EAR). Thirteen entities globally have been added to the Entity List, imposing strict export controls, with eleven of them originating from China.

These new regulations will take effect from January 6, 2025.

The U.S. government has identified the actions of these entities as violating U.S. national security and/or foreign policy interests. The government has stated that based on specific and demonstrable facts, there are reasonable grounds to believe that these entities have been, are, or are likely to be involved in activities that violate U.S. national security or foreign policy interests. As a result, when dealing with transactions involving listed entities, EAR imposes additional licensing requirements and restricts the availability of most exports, re-exports, and (domestic) transfers.

Chengdu RML Technology Co., Ltd., Chengdu Yaguang Electronics Co., Ltd., Hefei Starwave Communication Technology Co., Ltd., and Yaguang Technology Group Co., Ltd., all located within China, have been included in the list of entities by BIS.

These entities have been listed because they have acquired or attempted to acquire U.S.-origin items to support China’s military modernization efforts.

Specifically, Chengdu RML Technology Co., Ltd. has provided precision-guided missiles and satellite communication systems to the People’s Liberation Army (PLA) of China. Chengdu Yaguang Electronics Co., Ltd., along with its parent company Yaguang Technology Group Co., Ltd., has supplied dual-use electronic components to PLA and multiple entities on the Entity List. Hefei Starwave Communication Technology Co., Ltd. has provided radio frequency/microwave products explicitly for military equipment to PLA and entities on the list.

Under EAR Section 744.11, these activities are deemed to be against U.S. national security and foreign policy interests. As a result, these entities must obtain licenses when exporting, re-exporting, or transferring all items subject to EAR and abide by the licensing review policy, failure to comply will be considered a presumption of denial.

Additionally, BIS has decided to add the following seven entities (all based in China) to the Entity List:

1. Chinese Academy of Sciences Changchun Institute of Optics, Fine Mechanics, and Physics

2. Ji Hua Laboratory

3. Nanjing Simite Optical Instruments Co., Ltd.

4. Peng Cheng Laboratory

5. Shanghai Institute of Optics and Fine Mechanics

6. Suzhou Ultranano Precision Optoelectronics Technology Co., Ltd.

7. Wuhu Keweizhaofeng Electronics Co., Ltd.

These entities are involved in acquiring and attempting to acquire U.S.-origin items to support China’s military modernization efforts. Furthermore, there are clear linkages between these entities and concerning activities, including developing hypersonic weapons, designing and modeling hypersonic aircraft, utilizing proprietary software for weapon design and disruption modeling, and supporting military-civil fusion efforts.

According to EAR Section 744.11, these activities are contrary to U.S. national security and foreign policy interests. By adding these entities to EAR, all exports, re-exports, and domestic transfers of items governed by EAR require licenses and must comply with the presumption of denial licensing review policy.

Moreover, Emerging Future Solutions Private Limited has also been included on the Entity List for providing support to Pakistan’s ballistic missile program.

In addition, the 2024 Annual Enforcement Review released by BIS on January 3rd highlighted that the cross-agency “Disruptive Technology Enforcement Team” has initiated 15 criminal cases on export control violations, completing over 1440 end-use checks in 60 countries.

On January 2nd, BIS announced plans to establish policies evaluating security issues in the unmanned aircraft systems (UAS) supply chain and imposing restrictions on unmanned aerial information technology and services related to China.