China sanctions foreign firms over actions harming national interests

China has added Dedrone by Axon, TechInsights Inc., and other entities to its unreliable entity list, citing actions that seriously damaged China's national sovereignty, security and development interests.

The Ministry of Commerce (MOFCOM) confirmed the move on Thursday, stating that the sanctions are a necessary and lawful response to the firms' harmful conduct.

A MOFCOM spokesperson, speaking in response to media inquiries, said the foreign entities had, despite China's strong opposition, engaged in activities such as military technology cooperation with China's Taiwan region, publishing egregious remarks related to China, and assisting foreign governments in suppressing Chinese enterprises.

The listing is based on multiple Chinese laws and rules, the spokesperson said, emphasizing that China has always been prudent in its application of the list, which targets only a very small number of foreign entities that pose a threat to China's national security.

Law-abiding foreign entities have "absolutely no need to worry," the official said.

MOFCOM reiterated that the Chinese government remains committed to welcoming enterprises from all countries to invest and operate in China. It pledged to continue providing a stable, fair, and predictable business environment for foreign companies that operate in compliance with Chinese laws and regulations.