China revealed details about the «unreliable entity list», specifically regarding punishments imposable against those named.
Firms, organizations, individuals and even countries could be placed on the list, according to guidelines issued by the Ministry of Commerce, should they pose a threat, potential or real, to China’s sovereignty, national security, development and business interests.
Penalties at the ministry’s disposal include restrictions on trade, investment, work, and residence permits as well as fines. Those who have violated the rules are allowed a grace period to «rectify their transgressions» and apply to be removed form the «unreliable entity list».
Potential List
In mid-2019, state-backed media reportedly named a handful of entities that it believed were likely to be part of the initial list including HSBC, FedEx and original equipment manufacturer Flex. All three firms are embroiled with contentious issues that involve Huawei including alleged legal entrapment, delay of package deliveries and detainment of equipment, respectively.
Authorities have said a list will be unveiled without specifying a timeline for the release.
China said only a small number of foreign entities will be named on the list and has dismissed accusations that it was targeting U.S. firms, adding that foreign investors continue to be welcome to its reforming and opening markets.
