The U.S. Department of Commerce publishes the names of certain foreign businesses, research institutions, government and private organizations, and individuals, that are subject to specific license requirements for the export, reexport and/or transfer (in-country) of specified items. These organizations and business comprise the Entity List.
Grounds for inclusion on the Entity List include activities sanctioned by the State Department and activities contrary to U.S. national security and/or foreign policy interests.
The End-User Review Committee (ERC), composed of representatives of the Departments of Commerce (Chair), State, Defense, Energy and, where appropriate, the Treasury, makes all decisions regarding additions to, removals from, or other modifications to the Entity List.
On August 27, 2020 the U.S. Department of Commerce added five subsidiaries of the PRC state-owned and controlled China Communications Construction Company Ltd. (CCCC) to the Entity List, in light of their activities enabling PRC land reclamation and militarization of disputed outposts in the South China Sea.
The ERC added the following subsidiaries of CCCC to the Entity List for engaging in activities contrary to U.S. national security interests:
China Communications Construction Company Dredging Group Co. Ltd
China Communications Construction Company Guangzhou Waterway Bureau
China Communications Construction Company Second Navigation Engineering Bureau
China Communications Construction Company Shanghai Waterway Bureau
China Communications Construction Company Tianjin Waterway Bureau
Specifically, the ERC took account of evidence that these entities enabled China to reclaim and militarize disputed outposts in the South China Sea. In particular, these entities have engaged in reclaiming land at Mischief Reef, which per a July 12, 2016 ruling by an Arbitral Tribunal convened under the 1982 Law of the Sea Convention was determined to be part of the Philippines’ exclusive economic zone and continental shelf.
On December 18, 2020 CCCC itself was added to the Entity List. The ERC determined that CCCC has enabled China to reclaim and militarize disputed outposts in the South China Sea, which has been detrimental to U.S. national security. In particular, this entity has engaged in reclaiming land at Mischief Reef, which pursuant to a July 12, 2016, ruling by the Hague-based Permanent Court of Arbitration, was determined to be part of the Philippine exclusive economic zone and continental shelf.