US includes CGN in “Entity List”

US includes CGN in “Entity List”

On August 14th, US Department of Commerce–Bureau of Industry and Security (BIS) announced that it will include China General Nuclear Group (CGN) and its four affiliated companies in the Entity List, which will limit the export activities of US enterprises to CGN and its related research institutions.

On the “Entity List” there are China General Nuclear Power Group, China General Nuclear Power Corporation, and China Nuclear Power Technology Research Institute Co., Ltd. Suzhou Nuclear Power Research Institute Co., Ltd. A total of 17 “entities” from 11 countries and regions were included in the “Entity List” by the US Department of Commerce this time.

When listed in the “entity list”, it means that any export or technology transfer to these “listed entities” requires permission from the Bureau of Industry and Security (BIS) of US Department of Commerce. The licensing policies of US to CGN and its related companies are “Presumption of Denial”, which means the export ban on CGN not only limited to US-developed components, software and services, it may also affect the normal commercial contract execution and supply chain collaboration with US companies.

“Entity list” system is an integral part of the US Export Administrative Regulations (EAR). When the United States believes that the actions of relevant institutions and individuals conflict with US national security and diplomatic interests, it may be included in the list of entities. The reason for the listing of CGN is that US Department of Commerce has accused the four entities of attempting to use US nuclear technology and materials for military purpose in China.

CGN is the largest nuclear power developer in China. It has suffered similar bans from the US Department of Energy last year. The ban was escalated this time. However, CGN indicated that after preliminary analysis, the impact caused by US limitation is still under control.

About Author

Elaine Li

Elaine Li (李益楠) is Marketing Manager for the Chinese Market. With ten years of experience in the nuclear power market, Elaine is experts for the certification of safety equipment (HAF 604 and 601) and marketing intelligence.