The Ministry of Commerce Photo: VCG

China's Ministry of Commerce (MOFCOM) said on Thursday that China's move to add three US firms to the unreliable entities list is a normal law enforcement action, noting that US companies selling arms to Taiwan island harms peace and stability across the Taiwan Straits.

He Yadong, spokesperson for MOFCOM, made the remarks after the ministry on Monday announced the inclusion of three US companies - Boeing Defense, Space & Security, General Atomics Aeronautical Systems, and General Dynamics Land Systems - to the unreliable entities list for selling arms to China's Taiwan region.

They will be barred from engaging in China-related import or export activities, and are forbidden from making new investments in China. Senior executives of the companies are also prohibited from entering China, MOFCOM said.

He noted that the three companies have repeatedly sold missiles, military drones, tanks and other offensive weapons to Taiwan, thereby condoning and supporting the separatist forces seeking "Taiwan independence." This has seriously undermined China's national security, seriously jeopardized China's national sovereignty and territorial integrity, seriously violated the One-China principle and the stipulations of the three China-US joint communiques, and seriously undermined peace and stability across the Taiwan Straits.

"Our will to resolve the Taiwan question and complete national reunification is rock-solid, our ability to safeguard national sovereignty and territorial integrity is impregnable, and our actions against 'Taiwan independence' separatist activities and foreign interference are resolute and strong," He said.

"The MOFCOM move reflects the Chinese government's resolute defense of national sovereignty and security. The sale of missiles, military drones and other offensive weapons to Taiwan by these US companies directly threatens China's national security, and it is entirely legitimate and necessary to take corresponding measures in this regard," Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday.

The spokesperson also said there was evidence that US firm Caplugs circumvented the unreliable entities list regulations by transferring goods purchased from China to the unreliable entities. It is necessary to recognize that there is a risk in the US enterprise and its transactions, He said, urging Caplugs to rectify the situation. Otherwise, the ministry will take further measures against the enterprise in accordance with the law.

Wang said that the decision also serves as a strong warning to other foreign companies that any attempt to harm China's interests will be sanctioned by law. "This is not only a punishment for the three companies, but also a warning to other potential violators," he said.

Wang noted that the first and foremost bottom line for foreign companies operating in China is strict compliance with Chinese laws and regulations. This includes not only laws in the commercial field, but also all legal provisions related to national security, labor law, and taxation, among others.

"China has always dealt with the issue of the unreliable entities list in a prudent manner, targeting only a very small number of foreign entities that jeopardize China's national security, and there is no need for honest and law-abiding foreign entities to have any concern," He said.


"As always, the Chinese government welcomes enterprises from all over the world to invest and expand their business in China, and the country is committed to providing a stable, fair and predictable business environment for law-abiding and compliant foreign enterprises," He further noted.

Global Times