The Chinese Ministry of Commerce (MOFCOM) on Saturday issued rules for a widely anticipated unreliable entity list mechanism that could severely punish foreign entities and individuals who undermine China’s national interests, in a move that is believed to counter the US’ relentless crackdown campaign against Chinese businesses.
The list would include foreign entities or individuals who undermine China’s sovereignty, security and development interests and those who violate market principles by cutting off normal transactions with Chinese firms, organizations or individuals, according to the rules issued by MOFCOM.
The Ministry did not release specific foreign entities or individuals that will be put on the list.
Foreign entities added to the Unreliable Entity List could be restricted or prohibited from engaging in China-related import or export activities and investing in China, according to the provisions.
Relevant personnel of the entity may also be restricted or banned from entering China and their work permit and residence status could also be restricted or revoked. Foreign entities could also face a fine and other “necessary measures.”
Both sides can play the game.
