The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) imposed sanctions on 26 companies on Monday, October 21, including 6 Chinese companies. BIS stated that these entities are suspected of violating export controls, participating in “concerning weapon programs,” and evading U.S. export controls on Russia and Iran.
According to a statement by the U.S. Department of Commerce, among the 26 target companies, 16 are located in Pakistan, 6 in China, 3 in the United Arab Emirates, and 1 in Egypt.
After being included in the Entity List, these companies will no longer be able to obtain U.S. items and technology without government authorization.
The U.S. Department of Commerce stated that the 6 Chinese companies supported the military modernization of the PRC (Chinese Communist Party) using U.S. goods and technology, and they also engaged in delaying and evasive behaviors during final end-use checks.
Furthermore, these 6 Chinese companies procured U.S. goods for Iran’s “weapons of mass destruction and unmanned aerial vehicle (UAV) programs.”
Among the 16 target companies in Pakistan, 9 are accused of being front companies and procurement agents for the blacklisted Advanced Engineering Research Organization. The remaining 7 companies were listed for supporting Pakistan’s ballistic missile program.
The 3 entities from the United Arab Emirates and 1 entity from Egypt procured or attempted to acquire U.S. parts to evade sanctions imposed on Russia after its invasion of Ukraine.
Deputy Secretary of Commerce Alan Estevez stated in the release, “We will remain vigilant in defending American national security from the actions of bad actors.”
He added, “Today’s actions send a message to malicious actors that if they violate our controls, they will face consequences.”
Thea D. Rozman Kendler, Assistant Secretary for Export Enforcement at the Department of Commerce, emphasized that the department will continue to “cut off entities attempting to evade our controls and engaging in activities that violate U.S. national security.”
She stressed that Iran’s weapons of mass destruction program, UAV program, and Pakistan’s ballistic missile program pose significant threats to U.S. national security.
Matthew S. Axelrod, Assistant Secretary for Export Enforcement at the Department of Commerce, stated, “Today’s list also clearly demonstrates that foreign parties will face consequences when they engage in delaying or evasive behavior during our end-use checks.”