US adds 16 entities from China and Pakistan to trade blacklist for aiding Islamabad's 'unsafeguarded' nuclear programme

The US Commerce Department has added 27 foreign entities and individuals, including 16 from China and Pakistan, to its trade blacklist "based on their contributions to Pakistan’s unsafeguarded nuclear activities or ballistic missile program"

Nov 25, 2021
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Islamabad's 'unsafeguarded' nuclear programme (Photo: The Nation)

The US Commerce Department has added 27 foreign entities and individuals, including 16 from China and Pakistan, to its trade blacklist "based on their contributions to Pakistan’s unsafeguarded nuclear activities or ballistic missile program". It said eight technology entities based in China were added to the list “to prevent U.S. emerging technologies from being used for the PRC’s quantum computing efforts that support military applications, such as counter-stealth and counter-submarine applications, and the ability to break encryption or develop unbreakable encryption”.

“These PRC-based technology entities support the military modernization of the People’s Liberation Army and/or acquire and attempt to acquire U.S. origin-items in support of military applications.”

The blacklisting of the firms “will also restrict exports to PRC producers of electronics that support the People’s Liberation Army’s military modernization efforts”, it said.

The 27 blacklisted entities and individuals also include some in Japan and Singapore and one in Russia that were added to the Military End-User (MEU) list, UNI news agency said.

U.S. Secretary of Commerce Gina M. Raimondo in a statement said: “Global trade and commerce should support peace, prosperity, and good-paying jobs, not national security risks. Today’s actions will help prevent the diversion of U.S. technologies to the PRC’s and Russia’s military advancement and activities of non-proliferation concern like Pakistan’s unsafeguarded nuclear activities or ballistic missile program. The Department of Commerce is committed to effectively using export controls to protect our national security.”

Three affiliates of Corad Technology Limited, a Chinese entity added to the Entity List in 2019, were added due to their involvement in sales of technology from the United States and other Western nations to Iran’s military and space programs, North Korea front companies, and Chinese government and defense industry subordinate entities, it said.

BIS has also added the Moscow Institute of Physics and Technology to the MEU List on the basis of its production of military products for a military end-user.

The MEU List identifies entities that have been determined by the End-User Review Committee (ERC) to be "military end users" pursuant of the EAR (Export Administration Regulations). That section imposes additional license requirements on, and limits the

availability of most license exceptions for, exports, reexports, and transfers (in-country) to listed entities on the MEU List.

Among the Chinese companies blacklisted are: Hangzhou Zhongke Microelectronics Co., Ltd., Hunan Goke Microelectronics, New H3C Semiconductor Technologies Co., Ltd., Xi’an Aerospace Huaxun Technology, and Yunchip Microelectronics, all located in China, for their support of the military modernization of the People’s Liberation Army.

It also added the Hefei National Laboratory for Physical Sciences at Microscale, QuantumCTek Co., and Shanghai QuantumCTeck Co., Ltd.) to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of military applications.

The ERC added Shaanxi Zhi En Electromechanical Technology Co., Ltd. located in China; and Q&N Traders, U.H.L. Company, Jiuding Refrigeration & Air-conditioning Equipment Co (Pvt) Ltd, K-SOFT Enterprises, Seljuk Traders (SMC-Private) Limited, Global Tech Engineers, Asay Trade & Supplies, and Jade Machinery Pvt. Ltd., all located in Pakistan, to the Entity List based on their contributions to Pakistan’s unsafeguarded nuclear activities.

The ERC decided to add Poly Asia Pacific Ltd. (PAPL) and Peaktek Company Ltd., both entities located in China, to the Entity List based on its contributions to Pakistan’s unsafeguarded nuclear activities. The ERC also decided to add Al-Qertas, located in Pakistan, to the Entity List based on their contributions to Pakistan’s unsafeguarded nuclear activities.

The ERC decided to add Broad Engineering located in Pakistan to the Entity List based on its contributions to Pakistan’s ballistic missile program.

The ERC added Prime Tech, located in Pakistan, and two of its employees, Muhammad Ashraf and Muhammad Farrukh, also located in Pakistan, to the Entity List for procuring items subject to the EAR on behalf of Techlinks, an entity located in Pakistan that was added to the Entity List in September 2018.

The ERC determined that the conduct of the above described 27 entities “raises sufficient concerns that prior review, via the imposition of a license requirement for exports, reexports, or transfers (in-country) of all items subject to the EAR involving these 27 entities, is appropriate”. It also determined that “the possible issuance of license denials or the possible imposition of license conditions on shipments to these entities will enhance BIS’s ability to prevent violations of the EAR or otherwise protect U.S. national security or foreign policy interests.”

(SAM)