U.S. Commerce Department Adds Chinese Firms to Unverified List

The U.S. Commerce Department has placed three Chinese companies on its 'Unverified List,' which includes firms receiving U.S. exports that cannot be inspected. This move requires U.S. exporters to perform extra due diligence and may necessitate additional licensing for technology and goods sent to these firms.

The U.S. Commerce Department has taken action against three companies in China, placing them on a critical list that restricts their ability to receive U.S. exports due to unverified status.

The companies have been added to the 'Unverified List' because U.S. officials have been unable to complete mandatory on-site inspections, a process complicated by the requirement of approval from China's commerce ministry. Without these inspections, trust in the recipients of U.S.-origin technology and products cannot be assured.

This development means U.S. exporters now need to engage in enhanced due diligence processes and may need to secure additional licenses before transacting with the listed firms, marking a significant hurdle in U.S.-China trade relations.

(With inputs from agencies.)