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After U.S. Ban on TikTok, Wechat Apps, China Creates ‘Unreliable Entity List’

Sept. 19, 2020 (EIRNS)—The Trump Administration announced yesterday that TikTok and Wechat will be banned from downloading from U.S. app outlets—a somewhat weaker action than anticipated, although the future is not clear. Oracle is close to closing a deal to buy a share in TikTok, with certain conditions on American-run security controls, which will allow it to continue operations in the U.S.. Wechat looks to be in more difficulty, although there are complaints from the Chinese community in the U.S. as well as U.S. businesses which will be harmed.

China, meanwhile, announced today that the Commerce Department issued rules for the

“unreliability entity list” which had been announced earlier. The mechanism could “severely punish foreign entities and individuals who undermine China’s national interests, sovereignty, security and development interests, and those who violate market principles by cutting off normal transactions with Chinese firms, organizations or individuals,”

as reported in Global Times. No companies have been named as yet. Global Times reports:

“Foreign entities added to the Unreliable Entity List could be restricted or prohibited from engaging in China-related import or export activities and investing in China ... and may also be restricted or banned from entering China and their work permit and residence status could also be restricted or revoked. Foreign entities could also face a fine and other ‘necessary measures.’ ”

Not naming the U.S., it is clearly a measured response to the severe attack on Chinese businesses by the U.S., which has imposed sanctions already on more than 300 Chinese companies.

An inter-departmental working mechanism will be established by the Chinese government to manage the process.

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