Kevin Wolf Quoted by Reuters on New “Unverified” List for Chinese Companies and Schools

Akin Gump international trade partner Kevin Wolf has been quoted in the Reuters article “U.S. puts 37 Chinese companies and schools on red-flag ‘unverified’ list.”

The article reports that the Commerce Department, according to a notice in the Federal Register, has added more than three dozen Chinese companies and schools to a list of entities that U.S. companies should treat with caution. The list, according to the article, takes effect April 11 and also includes six organizations in Hong Kong, four in the United Arab Emirates, two in Malaysia and one in Indonesia.

Being put on the “unverified” list, said Wolf, means that U.S. suppliers to the unverified companies and schools can no longer, for example, use license exceptions to sell products to repair goods that were sold previously. They will now have to get a new license entirely.

“Even though it’s not an embargo, because of the hassle sometimes suppliers will treat it as an embargo. It has a practical effect that’s greater than the legal effect,” said Wolf.