China removed non-tariff retaliation to US
On May 14, 2025, China’s Ministry of Commerce (MOFCOM) announced the suspension of Unreliable Entity List measures against 17 U.S. entities and the Export Control Entity List against 28 U.S. entitieseffective immediately. This move is intended to implement the consensus reached during recent high-level China-U.S. economic and trade talks in Geneva and to promote the normalization of bilateral trade relations.
According to MOFCOM, these 17 U.S. entities were originally added to the Unreliable Entity List on April 4 and April 9, 2025. The original measures included prohibitions on engaging in import and export activities related to China and bans on making new investments within Chinese territory. Under the suspension, restrictions on 11 of the entities will be lifted for a 90-day period. The duration of the suspension for the remaining 6 entities was not specified. In addition, MOFCOM announced a 90-day suspension of export control measures against 28 U.S. entities.
MOFCOM stated that domestic Chinese companies seeking to conduct transactions with the affected U.S. entities may apply through the Unreliable Entity List working mechanism. Applications that meet the relevant conditions will be reviewed and approved in accordance with the law.
MOFCOM Responds to Suspension of Unreliable Entity List Measures Against 17 U.S. Entities
Question: The Joint Statement of the China-U.S. Economic and Trade Talks in Geneva mentioned that China will suspend or cancel certain non-tariff countermeasures against the United States starting April 2, 2025. Could you clarify what considerations are being made regarding the Unreliable Entity List?
Answer:
In accordance with the Anti-Foreign Sanctions Law of the People's Republic of China, the Provisions on the Unreliable Entity List, and other relevant regulations, the Working Mechanism of the Unreliable Entity List announced on April 4 and April 9, 2025, the inclusion of 17 U.S. entities on the Unreliable Entity List. These entities are prohibited from engaging in import or export activities related to China and from making new investments within China.
To implement the consensus reached during the high-level China-U.S. economic and trade talks, effective May 14, 2025, the measures announced in the April 4 notice (Unreliable Entity List Working Mechanism [2025] No. 7) will be suspended for 90 days, and the measures announced in the April 9 notice (Unreliable Entity List Working Mechanism [2025] No. 8) will also be suspended.
Pursuant to the relevant provisions of the Provisions on the Unreliable Entity List, domestic companies may apply to conduct transactions with the listed entities. The Working Mechanism will review such applications in accordance with the law and grant approval for those that meet the required conditions.
MOFCOM Responds to Questions on the Export Control Entity List
Question: We noticed that the Joint Statement of the China-U.S. Economic and Trade Talks in Geneva mentioned that China would suspend or cancel certain non-tariff countermeasures against the United States starting April 2, 2025. What are the considerations regarding the export control entity list?
Answer:
In accordance with relevant export control laws and regulations, the Ministry of Commerce issued Announcement No. 21 and No. 22 on April 4 and April 9, 2025, respectively, placing a total of 28 U.S. entities on the export control entity list. These entities were prohibited from receiving exports of dual-use items.
To implement the consensus reached during the high-level China-U.S. economic and trade talks, it has been decided that, effective May 14, 2025, the related measures against these entities will be suspended for a period of 90 days.
Export operators who intend to export dual-use items to the aforementioned 28 entities must apply to the Ministry of Commerce in accordance with the Regulations of the People’s Republic of China on Export Control of Dual-Use Items. MOFCOM will review the applications in accordance with the law and applicable regulations, and grant licenses to those that meet the relevant requirements.