China's Unreliable Entity List system is conducive to maintaining a more stable, fair and predictable business environment in the country, said a trade expert in an interview with Xinhua.
Zhang Wei, deputy head of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, made the remarks after China's decision to add two U.S. companies to its unreliable entity list because they sold arms to China's Taiwan region.
"While fully demonstrating China's strong will to safeguard national sovereignty, security and development interests, the decision also reflects China's firm determination to operate prudently and provide a more stable, fair and predictable business environment for foreign enterprises in the country," said Zhang.
China introduced the system in September 2020 by issuing a regulation. It is 28 months later that China applied the regulation, which Zhang said is "a right weapon of self-defense," for the first time. "That showed a highly responsible attitude," she added.
Over the years, Lockheed Martin Corporation and Raytheon Missiles & Defense have repeatedly sold arms to Taiwan despite China's opposition.
Zhang said even so, the Chinese government did not include Raytheon's parent company on the unreliable entity list, but only targeted Raytheon Missiles & Defense.
It shows that China's decision is not indiscriminate punishment, Zhang said, adding that companies that abide by Chinese laws and regulations with the spirit of contracts have no need to worry.
China has shown full restraint in the design of this system, compared with some Western countries which generalized the concept of national security and abused the "blacklist" sanctions option, Zhang said.
She noted that foreign enterprises are an important part of the Chinese market, and important participants, witnesses and contributors to China's growth.
The Central Economic Work Conference held last December noted that China will make greater efforts to attract and utilize foreign investment.
"China always keeps its promises," said Zhang, adding that China's attitude has been consistent and has never changed. "That is to provide a more stable, fair and predictable business environment for law-abiding foreign businesses and eliminate interference from illegal activities."
Looking ahead, the Chinese government will firmly protect the legitimate rights and interests of all market players, Zhang said. "For foreign companies that abide by Chinese laws, the business environment will only get better."
(Source: Xinhua)
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