China's Ministry of Commerce (MOC) announced Tuesday that it has added seven U.S. companies to its Unreliable Entity List citing their involvement in arms sales to Taiwan. The announcement imposes strict measures including trade bans with China and travel restrictions for the companies’ senior executives.
The blacklisted firms include Inter-Coastal Electronics, System Studies & Simulation, IronMountain Solutions, Applied Technologies Group, Axient, Anduril Industries, and Maritime Tactical Systems.
Effective immediately, these companies are prohibited from import and export activities with China and making new investments in the country. The companies’ executives are prohibited from entering China and any existing work or residence permits will be revoked.
China says the move is necessary to maintain its sovereignty and security interests. The decision is backed by the country’s Foreign Trade Law, National Security Law, and Anti-Foreign Sanctions Law, as well as regulations on the Unreliable Entity List.