LegislationCN
Malicious Entity List
China's State Council list created by Decree No. 835 on 13 April 2026 to counter US secondary sanctions; not yet activated as of 28 April.
Last refreshed: 28 April 2026 · Appears in 1 active topic
Key Question
Could China's Malicious Entity List target US banks enforcing Hengli sanctions?
Timeline for Malicious Entity List
#8226 Apr
GL-V opens a 24 May Iran deadline
Iran Conflict 2026#8213 Apr
China's Decree 835 sits in reserve
Iran Conflict 2026Common Questions
- What is China's Malicious Entity List and how is it different from the Unreliable Entity List?
- China's Malicious Entity List, created by Decree No. 835 in April 2026, gives the Ministry of Justice power to designate foreign entities for asset-freezes and entry-bans. It differs from the 2020 Unreliable Entity List (MOFCOM-administered, trade-focused) by assigning authority to the Ministry of Justice and explicitly framing the tool as a legal counter to foreign sanctions.Source: Lowdown
- Has China put any US companies on its Malicious Entity List?
- No. As of 28 April 2026 the list remained empty. China issued Decree No. 835 eleven days before the Hengli designation but held the instrument in reserve.Source: Lowdown
- What happens if China activates the Malicious Entity List against Western firms?
- Listed entities could face asset-freezes in China, entry bans on Chinese territory, and restrictions on investment in China. Multinationals could face conflicting legal obligations if they are on both the US SDN list and the Chinese Malicious Entity List.Source: Morrison Foerster
Background
The Malicious Entity List, created by Decree No. 835 on 13 April 2026, gives China's Ministry of Justice power to designate foreign entities for asset-freezes, entry-bans, and investment-restrictions . It was issued eleven days before OFAC's Hengli designation and remained unactivated as of 28 April .
How the World Sees Them
China
The Ministry of Justice frames the list as a lawful sovereign response to illegal US extraterritorial sanctions, consistent with international law principles against unilateral coercive measures.
United States
OFAC and US sanctions lawyers regard the Malicious Entity List as the most structurally significant Chinese counter-sanctions instrument to date; its non-activation is being closely watched.
Multinational corporations
Law firms including Morrison Foerster have advised multinationals that activation of the list could create irreconcilable compliance conflicts for firms operating in both the US and Chinese markets.