Mistaken Identity: Blacklist Blunders Threaten Businesses

Doris Au, a Hong Kong hardware seller, saw her business account frozen after being mistakenly linked to a U.S. trade blacklist entry. This error highlights broader issues with the U.S.'s trade restrictions targeting China and Russia, which can erroneously impact businesses due to outdated or incorrect information.

Doris Au, a veteran door lock seller in Hong Kong, faced a devastating blow in June when her bank account was frozen and her business shuttered. This followed a mix-up involving a U.S. trade blacklist entry linked to a firm with a similar name. Au discovered the error after her operations were disrupted, impacting her supply chain.

The incident underscores the hurdles faced by the Biden administration in implementing strict trade controls, intended to curb China's access to sensitive U.S. technology. Reuters found that more than a quarter of the nearly 100 entities listed had erroneous data, proving challenging for enforcement and impacting innocent businesses.

Despite the intention to monitor and restrict technology transfers to Russia and China, loopholes and outdated records complicate matters. The labor-strapped Bureau of Industry and Security (BIS) struggles to keep the list current. Even as U.S. efforts stall shipments, businesses like Au's face unjust collateral damage amid these geopolitical trade battles.

(With inputs from agencies.)