环球律师事务所

On June 1, 2019, the Director General of the Department of Treaty & Law of MOFCOM and the Director General of the Bureau of Industry, Security, Import & Export Control of MOFCOM jointly answered several questions from journalists regarding the UEL. The key messages conveyed are as follows:

Second, China will take account of the following four factors to determine whether to designate a particular entity into the UEL:

Whether the entity has implemented actions of blockade, cut-off of supply or other discriminatory measures against Chinese entities;
Whether the actions of the entity are out of non-commercial purposes and in violation of market principles and contractual adherence spirits;
Whether the actions of the entity have caused or are causing material injuries to Chinese enterprises or relevant industries;
Whether the actions of the entity constitute threats or potential threats to China’s national security.

Third, China will, in accordance with the Foreign Trade Law, the Anti-Monopoly Law, the National Security Law and other laws, regulations and rules, adopt “any necessary legal and administrative measures” (任何必要的法律和行政措施) against the designated unreliable entities. At the meantime, the public will be alerted to be cautious to do business with the designated entities so as to keep away the risks of unreliability.

Fifth, the objectives for China to establish the UEL include:

To protect China’s national security, including economic security, science and technology security, information security and resource security;
To protect the public interests and the legitimate interests of enterprises and prevent Chinese entities from major risks like cut-off of supply or blockade;
To protect fair and equitable international economic orders and the rules-based multilateral trading rules and protect the security and stability of the global industrial chain.

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