Q: China has once again invoked the Unreliable Entity List to impose sanctions on certain foreign entities, including Dedrone by Axon, TechInsights Inc. and its branches. What considerations underlie this decision?

A: In recent years, certain foreign entities—including Dedrone by Axon, TechInsights Inc. and its branches—have, despite China’s firm opposition, engaged in so-called military-technical cooperation with China’s Taiwan region, made egregious statements concerning China, and assisted foreign governments in suppressing Chinese enterprises. Their actions have seriously undermined China’s national sovereignty, security, and development interests. Pursuant to Article 2 of the Provisions on the Unreliable Entity List, as well as the Foreign Trade Law, the National Security Law, and the Anti-Foreign Sanctions Law of the People’s Republic of China, 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 in 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.