Commerce Department adds 24 Chinese companies to the entity list 
for helping build military islands in the South China Sea

The Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) added 24 Chinese companies to the Entity List for their role in helping the Chinese military construct and militarize the internationally condemned artificial islands in the South China Sea. Despite protests from the United States and other countries, the government of the People’s Republic of China (PRC) has been rapidly building the artificial islands since 2013, enabling the Communist Chinese Party’s (CCP) militarization of disputed outposts in the South China Sea to undermine the sovereign rights of U.S. partners in the region.

“The United States, China’s neighbors, and the international community have rebuked the CCP’s sovereignty claims to the South China Sea and have condemned the building of artificial islands for the Chinese military,” said Commerce Secretary Wilbur Ross. “The entities designated today have played a significant role in China’s provocative construction of these artificial islands and must be held accountable.”

Since 2013, the CCP has dredged and constructed more than 3,000 acres across seven features in the South China Sea, which include air defense and anti-ship missile features. In addition, the PRC’s dredging and construction of certain outposts violates the sovereign rights of the Republic of the Philippines, as determined by the Permanent Court of Arbitration in its July 2016 award in a case brought by the Philippines against the PRC. In the Entity List additions, Commerce determined these entities enabled China to construct and militarize disputed outposts in the South China Sea.

The Entity List is a tool utilized by BIS to restrict the export, re-export, and transfer (in-country) of items subject to the Export Administration Regulations (EAR) to persons (individuals, organizations, companies) reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the United States.  Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited. 

These companies were placed on the Entity List for enabling the People’s Republic of China to reclaim and militarize disputed outposts in the South China Sea:

• China Communications Construction Company Dredging Group Co., Ltd.
• China Communications Construction Company Tianjin Waterway Bureau
• China Communications Construction Company Shanghai Waterway Bureau
• China Communications Construction Company Guangzhou Waterway Bureau
• China Communications Construction Company Second Navigation Engineering Bureau
• Beijing Huanjia Telecommunication Co., Ltd.
• Changzhou Guoguang Data Communications Co., Ltd.
• China Electronics Technology Group Corporation, 7th Research Institute (CETC-7)
• Guangzhou Hongyu Technology Co., Ltd., (a subordinate institute of CETC-7)
• Guangzhou Tongguang Communication Technology Co., Ltd. (a subordinate institute of 
• CETC-7)
• China Electronics Technology Group Corporation, 30th Research Institute (CETC-30)
• China Shipbuilding Group, 722nd Research Institute
• Chongxin Bada Technology Development Co., Ltd.
• Guangzhou Guangyou Communications Equipment Co., Ltd.
• Guangzhou Haige Communication Group Co., Ltd.
• Guilin Changhai Development Co., Ltd.
• Hubei Guangxing Communications Technology Co., Ltd.
• Shaanxi Changling Electronic Technology Co., Ltd.
• Shanghai Cable Offshore Engineering Co., Ltd.
• Telixin Electronics Technology Co., Ltd.
• Tianjin Broadcasting Equipment Co., Ltd.
• Tianjin 764 Avionics Technology Co., Ltd.
• Tianjin 764 Communication and Navigation Technology Co., Ltd.
• Wuhan Mailite Communication Co., Ltd.