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By identifying these firms as controlled by the Chinese military the US government opens the possibility for imposing economic sanctions under the International Emergency Economic Powers Act.
On May 12, 2020, GAO released the results of its study of agency guidance and universities' security practices related to export controlled information. The study examined (1) the extent to which State and Commerce have provided guidance and outreach that supports U.S. universities' understanding of export control regulations; (2) challenges U.S. universities face working with other federal agencies, such as DOD; and (3) the extent to which universities' export compliance practices align with State and Commerce guidelines.
Several universities and research institutes/centers are among the 24 organizations recently added to the Entity List by the US Department of Commerce's Bureau of Industry and Security (BIS) for "engaging in activities contrary to the national security and foreign policy interests of the United States."