U.S. Tightens Export Patrol with China's 'Unverified List' Update

The U.S. Commerce Department added three Chinese companies to the 'Unverified List' due to lack of on-site inspection approvals. The list requires U.S. exporters to perform extensive due diligence and possibly acquire extra licenses before exporting technology and goods to these firms.

The U.S. Commerce Department announced on Monday that three Chinese firms have been added to the 'Unverified List,' a registry of companies receiving American exports yet to undergo inspection by U.S. officials.

Inclusion on this list occurs when export control officers cannot conduct on-site visits to verify that a company is eligible to receive U.S.-origin technology and other exports.

China's commerce ministry must approve U.S. inspections of Chinese companies. Meanwhile, U.S. exporters are required to do additional due diligence and might need to apply for more licenses, treating the list as a cautionary measure.

(With inputs from agencies.)