China to Come Up with ‘List of Unreliable Entities’

In a recent special press conference of the Ministry of Commerce, a spokesman revealed a message suggesting that China is going to establish a “list of unreliable entities”. This is viewed as a retaliatory move by China against the United States’ so-called blacklist which greatly affected one of its major companies, Huawei.

The Ministry of Commerce spokesperson revealed that “China will establish a system of ‘unreliable entity list’.” He explained that, “Foreign enterprises, organizations or individuals that fail to comply with market rules, deviate from the spirit of the contract, and impose a blockade or confiscation of Chinese enterprises for non-commercial purposes, which seriously damage the legitimate rights and interests of Chinese enterprises, will be included in the list of ‘unreliable entities’.

Here are the three (3) questions from the media which were answered by the Ministry of Commerce spokesperson:

The Chinese government has introduced a “list of unreliable entities”. What is the consideration?

At present, the world economic development is uncertain and unstable factors are increasing. Unilateralism and trade protectionism are on the rise. The multilateral trading system is facing severe challenges, and normal international economic and trade activities are negatively disrupted. For non-commercial purposes, some foreign entities violate the normal market rules and the spirit of the contract, and impose blockades, confessions and other discriminatory measures against Chinese enterprises, damage the legitimate rights and interests of Chinese enterprises, endanger China’s national security and interests, and also give global industries Chain and supply chain security pose a threat, which has a negative impact on the global economy and damages the interests of related companies and consumers. In order to safeguard international economic and trade rules and the multilateral trading system, oppose unilateralism and trade protectionism, and safeguard China’s national security, social public interests and legitimate rights and interests of enterprises, the Chinese government has decided to establish a “list of unreliable entities”. Thank you.

What is the basis for China’s establishment of the “unreliable entity list” system?

According to the relevant laws and regulations such as the Foreign Trade Law of the People’s Republic of China, the Anti-Monopoly Law, and the National Security Law, the Chinese government has decided to establish a “list of unreliable entities” to treat those based on non-commercial purposes to China. Entities that impose blockades, confiscations or other discriminatory measures may cause substantial damage to Chinese enterprises or related industries, and foreign legal persons, other organizations or individuals that pose a threat or potential threat to China’s national security are included. Thank you.

What kind of measures will China take for the organizations or individuals listed?

For foreign legal persons, other organizations or individuals listed in the “list of unreliable entities”, necessary measures will be taken. Specific measures will be announced in the near future.

Source: mofcom.gov.cn as translated via Google Translate

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