China: Implemented new Provisions on the Unreliable Entity List

On 19 September 2020, the State Council of the People's Republic of China adopted and implemented the Unreliable Entity List, pursuant to the Foreign Trade Law and the National Security Law. The State shall organise and implement the Unreliable Entity List System, which will concern foreign activity in international economic, trade, and other relevant activities that is deemed to endanger national sovereignty, security or development interests of China, violate normal market transaction principles, or damage the legitimate rights and interests of enterprises or individuals of China. The working mechanism may take measures against the foreign entity that is included in the Unreliable Entity List, such as restricting or revoking work permits, imposing fines, and implementing other necessary measures. The provisions also outline procedures for investigating actions, making decisions on inclusion in the Unreliable Entity List, and removing entities from the list.