China’s unreliable entities list a guardian of market order

By introducing an unreliable entities list targeting rule-breakers, China aims to ensure a reliable market environment for those who abide by the rules. The Ministry of Commerce on Saturday outlined factors for consideration in listing unreliable foreign entities to warn market disruptors. China will consider whether the foreign entity has adopted discriminatory measures on Chinese entities including a blockade or supply cut, whether the foreign entity violates market rules or contract spirit for non-commercial purposes, whether it causes actual damage to Chinese firms or related industries, and whether it poses actual or potential threats to China’s national security, according to the ministry. The timely countermeasure is a rightful answer to the unjustifiable clampdown on Chinese entities and a strong defense of the rules-based multilateral trading system. Some countries have imposed discriminatory measures such as blocking and cutting supplies on Chinese firms for non-commercial purposes. Putting a “national security” tag on such actions could not whitewash their fouls as abuses of long-arm jurisdiction measures and typical cases of state will trampling on market forces. The legitimate rights and interests of Chinese companies have been damaged, and the costs are being passed on to the global industry and supply chains as the world economy is highly interwoven. Many more companies and consumers could suffer losses. Without a normal order, things could go terribly wrong. The unreliable entities list is also expected to deter similar breaches of international economic and trade rules as well as the multilateral trading system. The best way to contain unreliable entities is to enforce the rule of law. When they are flagged, the rule-abiding firms can bypass the business landmine field. The list also underscores China’s commitment to creating a better business environment. As China keeps widening its opening-up, it has also devoted great efforts to safeguarding the legitimate rights and interests of both domestic and foreign companies. China will keep making things easier for foreign companies that comply with laws and rules. The negative list for foreign investment is getting shorter and shorter, and legal protection of foreign investment is growing stronger. By punishing rule-breakers, a stable, fair and sustainable order of trade between enterprises can be ensured and a reliable business environment maintained.