China's commerce ministry explains implementation of unreliable entities list

China's Ministry of Commerce on Tuesday provided further details on the inclusion in February of two companies on the country's unreliable entities list.

On Feb. 16, China put two companies, Lockheed Martin Corporation and Raytheon Missiles &Defense, on its unreliable entities list as they sold arms to China's Taiwan region, banning them from engaging in China-related import or export activities and making new investments in China.

Senior executives of the two companies, including James Donald Taiclet, Frank Andrew St. John and Jesus Malave of Lockheed Martin Corporation, as well as Wesley D. Kremer, Agnes Soeder and Chander Nijhon of Raytheon Missiles &Defense, have since then been prohibited from entering China, as well as working, staying and residing in China, the ministry said, citing relevant laws and regulations.

The decision to ban the two companies from China-related import or export activities aims to prevent the use of Chinese products in their military businesses, said the ministry, urging Chinese enterprises to check and verify relevant transaction details when conducting business.

Chinese enterprises who are aware that the actual importer or user of their products is one of the above two U.S. enterprises should not carry out related import and export activities, and those violating relevant regulations will be held accountable, according to the ministry.