China has announced a 90-day pause on plans to add 17 U.S. entities to its 'unreliable entity list,' a move signaling an effort to de-escalate economic tensions between the world's two largest economies. The decision, effective from May 14, was confirmed by a spokesperson for China's Ministry of Commerce during a press briefing on Wednesday.
The 'unreliable entity list,' a trade mechanism introduced in 2020, allows Beijing to impose restrictions on foreign firms or organizations deemed to harm Chinese interests. While the 17 U.S. entities were not publicly named, they are believed to include defense contractors and tech firms previously linked to arms sales to Taiwan, according to analysts.
The pause reflects recent high-level dialogues between the Chinese mainland and Washington, with both sides acknowledging the need for 'constructive economic engagement,' the ministry said. However, the spokesperson emphasized that the suspension could be reversed if 'provocative actions jeopardizing China's sovereignty' persist.
Markets in Hong Kong and Shanghai responded cautiously to the news, with industry leaders expressing hope that the temporary halt may stabilize cross-Pacific supply chains. 'This gesture opens a window for negotiations,' said a Singapore-based trade analyst. 'But businesses will remain wary until more concrete agreements emerge.'
