The Bureau of Industry and Security (BIS) in the US Department of Commerce (DOC) announced on August 26 that it added 24 Chinese companies to the Entity List for their involvement in the illegal construction of artificial islands in the East Sea.

The Chu Thap (Fiery Cross) Reef in Vietnam's Truong Sa (Spratly) archipelago
(Photo: Reuters) 

In its statement, DOC said the Chinese companies have played important role in helping the Chinese military construct and militarise the internationally condemned artificial islands in the waters.

Meanwhile, the US Department of State said it will restrict visas to Chinese individuals involved in the above-mentioned case as well as those involved in blocking Southeast Asian countries that have sovereignty claims in the East Sea to access marine resources.

The Entity List is a tool utilised by BIS to restrict the export, re-export, and transfer (in-country) of items subject to the Export Administration Regulations (EAR) to persons (individuals, organisations, 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 US.

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.