The United States’ bureau of industry and security (BIS) announced on Wednesday the removal of three Indian entities from its restrictive Entity List, while at the same time, adding 11 Chinese entities over concerns related to national security, stating the move as “a clear message that there are consequences for supporting Chinese military modernisation.”
Explaining the decision, the BIS said that the additions were made due to the entities’ involvement in “activities contrary to US national security and foreign policy interests.”
The move was notified in a press release by the US department of commerce, which mentioned that the removal followed an interagency review.
The updated listing also includes modifications to one existing entry of India, eliminating three entities under that category. The entities removed are Indian Rare Earths, the Indira Gandhi Atomic Research Center (IGCAR), and the Bhabha Atomic Research Center (BARC).
“The removal of Indian entities Indian Rare Earths, Indira Gandhi Atomic Research Center (IGCAR), and Bhabha Atomic Research Center (BARC) will support US foreign policy objectives by reducing barriers to advanced energy cooperation, including joint research and development and science and technology cooperation, towards shared energy security needs and goals,” said BIS press release.
“As these actions demonstrate, the Entity List is a powerful tool that can be used to shape behavior that advances US national security and global cooperation,” said under secretary of commerce for industry and security Alan F Estevez. “With these Entity List additions and removal, we have sent a clear message that there are consequences for supporting the PRC’s military modernization, and alternatively, incentives for working with the US to further shared foreign policy goals and stronger bilateral relationships.”
The BIS notification also added, “The United States and India share a commitment to advancing peaceful nuclear cooperation and associated research and development activities, with strengthened science and technology cooperation over the past several years that has benefitted both countries and their partner countries around the world.”
By removing the three Indian entities, the US aims to eliminate barriers hindering energy-related partnerships, marking another step forward in US-India bilateral cooperation.
What is the Entity List?
The Bureau of Industry and Security (BIS) publishes the names of certain foreign persons – including businesses, research institutions, government and private organizations – that are subject to specific license requirements for the export, reexport and/or transfer (in-country) of specified items. The persons on the Entity List are subject to individual licensing requirements and policies.
Inclusion on this list indicates that the US government has reasonable grounds to believe these entities may engage in activities contrary to US national security or foreign policy interests
Being placed on the Entity List does not outright prohibit transactions but imposes stringent licensing requirements that complicate international business dealings.
