What’s new: The U.S. Commerce Department’s Bureau of Industry and Security (BIS) said Monday that it is removing 27 Chinese entities from its Unverified List after it successfully completed end-use checks.
“The ability to verify the legitimacy and reliability of foreign parties receiving U.S. exports through the timely completion of end-use checks is a core principle of our export control system,” Assistant Secretary for Export Enforcement Matthew Axelrod said in a statement.
The removals, set to become effective upon publication in the Federal Register on Tuesday, include a number of Chinese tech companies such as DK Laser Co. Ltd., Jialin Precision Optics (Shanghai) Co. Ltd. and Yunnan Tianhe Optoelectronic Co. Ltd., according to a BIS document.
The background: The statement came a day before an announcement from the Chinese Ministry of Commerce on Tuesday saying that U.S. Commerce Secretary Gina Raimondo will visit China from Aug. 27 to 30 at the invitation of Minister of Commerce Wang Wentao.
In October, the BIS issued a new policy allowing the agency to conduct end-use checks to verify foreign companies’ “legitimacy and reliability for receiving U.S. exports” which include American technology.
Under the policy, the agency can add a foreign party to the Unverified List after an end-use check is requested but not completed within 60 days, according to the BIS. After 60 more days have lapsed and if the BIS is still unable to conduct an end-use check due to host government inaction, the foreign party could be added to the Entity List.
Contact reporter Ding Yi (yiding@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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