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China Places 11 U.S. Firms on Unreliable Entity List and Expands Export Restrictions

China Places 11 U.S. Firms on Unreliable Entity List and Expands Export Restrictions

The Chinese government adds U.S. firms to its unreliable entity list and bans exports of dual-use items as part of ongoing trade tensions.
BEIJING, April 4, 2025 — China has officially added 11 U.S. firms, including Skydio and BRINC Drones, to its unreliable entity list, according to a statement from the Ministry of Commerce.

This action follows the companies' involvement in military technology cooperation with Taiwan, which China cites as a serious infringement on its national sovereignty and security interests.

A spokesperson for the ministry asserted that these firms would be held accountable for their actions in accordance with Chinese laws and regulations, reflecting China’s intention to manage its unreliable entity list with caution, targeting only those foreign entities that jeopardize its national security.

The spokesperson reassured that law-abiding foreign businesses have no cause for concern.

In tandem with this move, China announced a ban on the export of dual-use items to 16 U.S. entities identified in a separate export control list.

The ministry stressed that this measure is essential for safeguarding national security and fulfilling international obligations such as non-proliferation.

Entities involved in activities that could jeopardize China's interests were specifically noted as the reason for this export restriction.

On April 5, China publicly expressed its strong opposition to what it described as the U.S. abuse of tariffs, condemning the recent imposition of tariffs on various trading partners, including China.

The statement criticized the U.S. approach as detrimental to multilateral trade principles and harmful to the stability of the global economic order.

It claimed that unilateral tariff actions undermine the legitimate rights of nations and violate World Trade Organization (WTO) rules.

The Chinese government emphasized that such tariffs reflect a zero-sum mentality that disregards the cooperative spirit of international trade and urged the U.S. to reconsider its actions, suggesting that tariffs will ultimately lead to widespread backlash from the international community.

Despite these tensions, China reiterated its commitment to opening its economy to the world and creating a favorable business environment for foreign investors who comply with its laws.

The statement highlighted that economic globalization is crucial for human development and called for a collaborative approach to international economic affairs, opposing unilateralism and protectionism.

The situation remains dynamic as China continues to navigate its economic relationships amid growing tensions with the United States and an evolving global trade landscape.
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