On September 19, 2020, China’s Ministry of Commerce (“MOFCOM”) published the Provisions on the Unreliable Entity List (the “Provisions”), which took effect on the same day. MOFCOM had announced in May of 2019 that the Chinese government would introduce an “Unreliable Entity List” (“UEL”) regime, under which foreign entities or individuals that boycott or cut off supplies to Chinese companies for non-commercial reasons, causing serious damages to Chinese companies, would be identified. These much-delayed Provisions provide the framework and mechanisms for the identification of foreign entities or individuals to be designated to the UEL. Entities designated to the UEL will be subject to restriction or prohibition from engaging in China-related import or export activities and investment in China, among other possible measures.
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