US Blacklist on China Faces Accuracy Challenges Amid Technology Restrictions

A growing number of errors and outdated information on the U.S. trade blacklist targeting Chinese and Hong Kong firms has led to significant unintended consequences, such as the case of Hong Kong hardware seller Doris Au, whose business collapsed after being mistakenly associated with a blacklisted entity. A Reuters review found that over a quarter of nearly 100 Chinese and Hong Kong companies added to the U.S. entity list in 2023 and 2024 contained inaccuracies, including incorrect names, addresses, and outdated details, with some listed locations housing unrelated businesses or being long-demolished. These errors have resulted in legitimate businesses facing frozen accounts, broken supply chains, and severe financial losses, as foreign partners refuse to do business with them. Former U.S. officials cite limited resources at the Bureau of Industry and Security as a barrier to correcting these mistakes, while the use of front companies further complicates enforcement. Despite these flaws, the U.S. maintains that the blacklist is a crucial tool to restrict technology transfers to Russia and China, though loopholes and networks of intermediaries continue to allow some restricted trade. The situation highlights the challenge of balancing national security objectives with due diligence to prevent collateral damage to unrelated businesses.