China denies its unreliable entity list targets US companies

by BLOOMBERG / pic by BLOOMBERG

BEIJING • China dismissed accusations of targeting US firms as it seeks to punish foreign companies that damage its national security by adding them to a “unreliable entity list”, the Ministry of Commerce said in a press conference.

China said it would continue to welcome foreign investors, open its economy by deepening market reforms, and that it has no intention to target any particular countries or entities.

The list will comprise a small number of foreign entities that have put China’s national sovereignty, security and development interests in danger, it said. Penalties will only be imposed if offenders fail to rectify their transgressions during a grace period, it added.

China said it would reveal the list without specifying the timeline for the release. The new policies for punishing those on the list took effect on Saturday.

Penalties including restricting trade, investment and visas will be imposed on any company, country, group or person that appears on its “unreliable entity list”, the Commerce Ministry said on its website on Saturday.

The new policies for punishing those on the list took effect on Saturday, and include bans on investment, restrictions of work and residence permits, and in some cases fines. Violators may be given a grace period to rectify their transgressions, and can apply to be removed from the list. — Bloomberg