The US has banned 27 foreign firms, including 12 from China, due to national security concerns, according to the Commerce Department's Bureau of Industry and Security (BIS).

The BIS explained its decision in a regulation published in the Federal Register, saying, " “In this final rule, the BIS amends the Export Administration Regulations (EAR) by adding twenty-seven entities to the Entity List. These twenty-seven entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States.” 

Aside from the 12 Chinese businesses, the list also includes entities from Japan, Pakistan, and Singapore, as well as one from Russia.

Three affiliates of China's Corad Technology Limited are among the firms banned. This corporation was previously blacklisted in China, Singapore, and Japan in 2019 for its participation in selling technology from the United States and other Western nations to Iran's military and space projects. According to the dossier, they also worked with North Korean front firms, the Chinese government, and military sector subordinate entities.

Another eight organizations were banned for their involvement in the People's Liberation Army's military upgrading and seeking to purchase US-made equipment for military uses, according to the document. The remaining entities were identified for their involvement in Pakistan's ballistic missile development as well as its "unsafe nuclear program."

“The End-User Review Committee (ERC) determined that the conduct of the above described twenty-seven entities raises sufficient concerns that prior review, via the imposition of a license requirement for exports, reexports, or transfers (in-country) of all items subject to the EAR involving these twenty-seven entities, is appropriate,” the rule noted.

The ERC also determined that the possibility of issuing license denials or imposing license conditions on shipments to these entities will defend US national security or foreign policy interests.