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Between a Rock and a Hard Place: Unreliable Entity List vis-à-vis the US Entity List

Author: Qingxiu BU

Type: Article

ref: 1202165-84

N0:1 of 2021

Pages: 65-84

The US Entity List creates a legal conundrum for high-tech firms seeking to operate with some targeted Chinese companies. At the heart of the problem is the incongruity between the US and China perspectives on national security in their pursuit of global technological superiority. The conflict of law arises inevitably as a multinational company (MNC) attempts to comply with both US law and the Chinese Unreliable Entity List (UEL) system. The firms are thus placed in a proverbial rock and hard place. For the sake of remedies, it is essential to ascertain whether compliance with laws of the blacklisted firm’s home state would be considered as a “non-commercial consideration”, and further recognised as a valid defence.