The Ministry of Commerce's "Unreliable Entity List Mechanism" released the first list

Announcement No. 1 of 2023 on the Working Mechanism of the Unreliable Entity List

In order to safeguard national sovereignty, security and development interests, in accordance with the "Foreign Trade Law of the People's Republic of China", "National Security Law of the People's Republic of China" and other relevant laws, the working mechanism of the unreliable entity list is based on Article 2 and Article 2 of the "Regulations on the Unreliable Entity List". Article 8 and Article 10 and other relevant provisions,Decided to include Lockheed Martin Corporation and Raytheon Missiles & Defense, which are involved in arms sales to Taiwan, on the list of unreliable entities, and take the following measures:

1. The above-mentioned enterprises are prohibited from engaging in import and export activities related to China;

2. Prohibit the above-mentioned enterprises from making new investments in China;

3. Prohibition of the entry of senior management personnel of the above-mentioned enterprises;

4. Disapprove and cancel the work permit, stay and residence qualification of the above-mentioned senior management personnel in China;

five, impose fines on the above-mentioned enterprises respectively, the amount is twice the amount of the arms sales contracts of various enterprises to Taiwan since the implementation of the "Unreliable Entity List Regulations". The above-mentioned enterprises shall make payment in accordance with relevant laws and regulations within 15 days from the date of publication of this announcement. If this decision is not implemented within the time limit, the working mechanism of the Unreliable Entity List will take additional fines and other measures in accordance with the law.

Matters not covered in this announcement shall be implemented in accordance with the "Regulations on the List of Unreliable Entities".

This announcement comes into effect on the date of publication.

Working Mechanism of Unreliable Entity List

(Chapter of the Ministry of Commerce)

February 16, 2023

Ministry of Commerce Order No. 4 of 2020

Unreliable Entity List Regulations

Article 1In order to safeguard national sovereignty, security and development interests, maintain a fair and free international economic and trade order, and protect the legitimate rights and interests of Chinese enterprises, other organizations or individuals, according to the "Foreign Trade Law of the People's Republic of China", "National Security Law of the People's Republic of China", etc. Relevant laws formulate these regulations.

Article 2The state establishes an unreliable entity list system, and takes corresponding measures against the following behaviors of foreign entities in international economic and trade and related activities:

(1) Endangering China's national sovereignty, security, and development interests;

(2) Violating normal market transaction principles, interrupting normal transactions with Chinese companies, other organizations or individuals, or taking discriminatory measures against Chinese companies, other organizations or individuals, seriously damaging the legitimate rights and interests of Chinese companies, other organizations or individuals.

The term "foreign entities" as mentioned in these regulations includes foreign enterprises, other organizations or individuals.

Article 3The Chinese government adheres to an independent foreign policy, adheres to the basic norms of international relations such as mutual respect for sovereignty, mutual non-interference in internal affairs, equality and mutual benefit, opposes unilateralism and protectionism, resolutely safeguards the core interests of the country, safeguards the multilateral trading system, and promotes the construction of an open world economy.

Article 4The state establishes a working mechanism (hereinafter referred to as the working mechanism) in which the relevant departments of the central state organs participate, and is responsible for the organization and implementation of the unreliable entity list system. The working mechanism office is located in the competent department of commerce of the State Council.

The fifthThe working mechanism decides whether to investigate the conduct of relevant foreign entities according to its authority or based on suggestions and reports from relevant parties; if it decides to conduct an investigation, it will make an announcement.

Article 6The working mechanism may investigate the conduct of relevant foreign entities by questioning relevant parties, consulting or copying relevant documents and materials, and other necessary methods. During the investigation, relevant foreign entities may make statements and defenses.

The working mechanism may decide to suspend or terminate the investigation according to the actual situation; if the facts on which the decision to suspend the investigation is significantly changed, the investigation may be resumed.

Article 7The working mechanism shall make a decision on whether to include the relevant foreign entity in the list of unreliable entities based on the investigation results and comprehensively consider the following factors, and make an announcement:

(1) The degree of harm to China's national sovereignty, security, and development interests;

(2) The degree of damage to the legitimate rights and interests of Chinese enterprises, other organizations or individuals;

(3) Whether it complies with the prevailing international economic and trade rules;

(4) Other factors that should be considered.

eighthIf the facts about the behavior of the foreign entity are clear, the working mechanism may directly consider the factors stipulated in Article 7 of these regulations and make a decision on whether to include it in the list of unreliable entities; if the decision is included, it shall be announced.

Article 9The announcement of including a foreign entity in the list of unreliable entities can remind the risks of transactions with the foreign entity, and can specify the time limit for the foreign entity to correct its behavior according to the actual situation.

Article 10For foreign entities included in the Unreliable Entity List, the working mechanism may decide to take one or more of the following measures (hereinafter referred to as “handling measures”) according to the actual situation, and make an announcement:

(1) Restrict or prohibit it from engaging in import and export activities related to China;

(2) Restrict or prohibit its investment in China;

(3) Restricting or prohibiting the entry of relevant personnel, means of transportation, etc.;

(4) Restrict or cancel the work permit, stay or residence qualification of its relevant personnel in China;

(5) Imposing a corresponding amount of fines according to the seriousness of the circumstances;

(6) Other necessary measures.

The handling measures stipulated in the preceding paragraph shall be implemented by relevant departments in accordance with the division of responsibilities according to law, and other relevant units and individuals shall cooperate in the implementation.

Article 11If the relevant foreign entity is included in the announcement of the unreliable entity list to specify the time limit for correction of the relevant foreign entity, the handling measures stipulated in Article 10 of these regulations shall not be taken within the time limit; The provisions of Article 10 shall take measures to deal with it.

Article 12Relevant foreign entities are restricted or prohibited from engaging in China-related import and export activities. If Chinese enterprises, other organizations or individuals really need to conduct transactions with this foreign entity under special circumstances, they should submit an application to the Office of the Working Mechanism, and they can cooperate with the foreign entity upon approval. The foreign entity conducts the corresponding transaction.

Article 13The working mechanism may decide to remove the relevant foreign entity from the list of unreliable entities according to the actual situation; if the relevant foreign entity corrects its behavior and takes measures to eliminate the consequences of the behavior within the correction period specified in the announcement, the working mechanism shall make a decision to remove it from the unreliable entity list. Entity list.

Relevant foreign entities can apply to remove them from the list of unreliable entities, and the working mechanism decides whether to remove them according to the actual situation.

The decision to remove the relevant foreign entity from the Unreliable Entity List shall be announced; from the date of announcement, the measures taken in accordance with Article 10 of these Regulations shall cease to be implemented.

Article 14These regulations shall come into force on the date of promulgation.