The U.S. Investigates Communist China’s Companies for Evading Sanctions

On May 31, U.S. Commerce Secretary Gina Raimondo said the Biden administration is working to place more Communist China’s companies on the government’s economic blacklist as it investigates these companies for evading American sanctions.
Under the U.S. “Export Administration Regulations (EAR),” exporting, re-exporting, or transferring articles to entities on the Entity List requires applying for a license from the U.S. Department of Commerce’s Bureau of Industry and Security (BIS). However, it is very difficult for entities included on this list to obtain U.S. products and technologies.
Secretary Raimondo stated that those sanctioned Communist China’s companies intended to evade U.S. sanctions with tricks, such as setting up a new company, and these misbehaviors are under the U.S. government’s investigation.
The Trump administration reportedly added dozens of Communist China’s companies to the Entity List, including Huawei, SMIC, and DJI. Last November and December, the Biden administration successively placed another dozen of Communist China’s companies and institutions on the list.
Raimondo also said the U.S. is seeking to cooperate with more allies to bring their trade restrictions in line with U.S. export controls.