The working mechanism for China's unreliable entity list announced on the 4th that it has decided to add entities such as Skydio Inc. to the unreliable entity list. These companies will be prohibited from engaging in import and export activities related to China and from making new investments within China. The announcement will be effective from the date of publication.
A spokesperson for the Ministry of Commerce of China stated on the 4th that in recent years, companies such as Skydio Inc. and BRINC Drones have engaged in so-called military technology cooperation with Taiwan despite China's strong opposition, seriously harming China's national sovereignty, security, and development interests. According to laws such as the Foreign Trade Law of the People's Republic of China, the National Security Law of the People's Republic of China, and the Anti-Foreign Sanctions Law of the People's Republic of China, China, based on Article 2 of the Regulations on the Unreliable Entity List, will lawfully hold them accountable for their illegal responsibilities.
The spokesperson emphasized that China has always handled matters related to the unreliable entity list prudently, only targeting a very small number of foreign entities that endanger China's national security. Foreign entities that act with integrity and comply with the law have nothing to worry about. The Chinese government continues to welcome companies from around the world to invest and develop in China and is committed to providing a stable, fair, and predictable business environment for foreign enterprises that comply with the law.
At the same time, the spokesperson noted that, to safeguard national security and interests and fulfill international obligations such as non-proliferation, the Ministry of Commerce has issued an announcement to include 16 U.S. entities in the export control list, prohibiting the export of dual-use items to them, based on the Export Control Law of the People's Republic of China and the Regulations on the Administration of Export Control of Dual-Use Items and other relevant legal provisions.
The spokesperson stated that these entities have engaged in activities that may endanger China's national security and interests, and any export operators must not violate these regulations.