BEIJING — China will consider four factors when deciding whether to put a foreign entity on a list of “unreliable entities,” the Ministry of Commerce (MOC) said on June 1.
The country will establish such a list based on relevant laws and regulations to safeguard national security, public interest and the rights and interests of Chinese enterprises, the MOC announced on May 31.
The Chinese government will consider first whether the foreign entity has adopted discriminatory measures on Chinese entities including a blockade or supply cut before putting it on the list, said Zhi Luxun, director with MOC’s bureau of industry, security, import and export control.
It will also consider three other factors including whether the foreign entity violates market rules or contract spirit for non-commercial purposes, whether it causes actual damage to Chinese firms or related industries, and whether it poses actual or potential threats to China’s national security, Zhi said.
China will take all necessary legal and administrative measures against the listed entities in accordance with China’s foreign trade law, anti-monopoly law, state security law and other related laws and regulations, according to the MOC.
Enterprises or individuals on the list will go through certain investigation procedures and related stakeholders will be given certain rights to defend themselves. Detailed measures will be rolled out soon, said Wang Hejun, director of MOC’s treaty and law department.
The decision to establish the list is made in line with international practice with the aim to safeguard the fair and reasonable international economic and trade order, and the rule-based multilateral trading system, Wang said.
The list will also work as an alert for Chinese enterprises to guard against certain foreign entities when doing businesses with them, Zhi said.
Zhi added the international industrial division is intertwined. Some countries’ abuse of long-arm jurisdiction will deal a heavy blow to global economic growth and the security and stability of international industrial, supply and value chains.
