Q: China has invoked the Unreliable Entity List to impose sanctions on three companies involved in arms sales to China’s Taiwan region. What is the reasoning behind this action?

A: In recent years, Saronic Technologies, Inc., Aerkomm Inc., and Oceaneering International, Inc. have engaged in so-called military-technical collaboration with China’s Taiwan region despite China’s firm opposition, severely undermining China’s national sovereignty, security, and development interests. Pursuant to Article 2 of the Regulations on the Unreliable Entity List, as well as the Foreign Trade Law, the National Security Law, and the Anti-Foreign Sanctions Law, China is lawfully holding these entities accountable for their unlawful actions.

China has consistently exercised prudence in applying the Unreliable Entity List mechanism, targeting only a very small number of foreign entities that endanger China's national security. Foreign entities that operate in good faith and compliance with laws have no cause for concern. The Chinese government welcomes, as always, enterprises from all countries to invest and do business in China, and commits to provide a stable, equitable and predictable business environment for law-abiding foreign companies.