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US Defense Department Review and Chinese Research Entities: What Foreign Founders Need to Know
China's Ministry of Commerce responds to US科研安全审查 results, opposing politicization of research cooperation. Key takeaways for foreign entrepreneurs operating in China.
US Defense Department Review and Chinese Research Entities: What Foreign Founders Need to Know
On October 19 (US Eastern Time), the US Department of Defense released the results of a research security review concerning certain US universities. According to the review, these universities have fully terminated cooperation with entities on the so-called 1286 list. Many Chinese research institutions are included on that list. A journalist asked China's Ministry of Commerce (MOFCOM) for comment, and the spokesperson provided a response on October 23, 2026.
For foreign founders registering or operating a company in China, especially in technology, research, or education sectors, this development may raise questions about cross-border research collaboration and compliance. Below is a summary of the official response and practical considerations.
MOFCOM's Response: Key Points
The MOFCOM spokesperson stated that China has noted the situation. The Chinese side consistently opposes the US practice of overgeneralizing the concept of national security, politicizing, weaponizing, and instrumentalizing exchanges and cooperation in the scientific research field, and making unreasonable "stigmatizing" accusations against Chinese research institutions.
The spokesperson further noted that the US move essentially forces US research institutions to "take sides" and deliberately undermines normal China-US research cooperation. This, the spokesperson said, will only weaken the US's own scientific and technological progress and innovative development—likened to "lifting a rock only to drop it on one's own feet."
According to the spokesperson, strengthening China-US research cooperation serves the common interests of both sides, while restrictions and "decoupling" harm others and oneself.
China urges the US to respect facts, conform to the general laws and trend of global scientific and technological exchanges and cooperation, and immediately stop the erroneous practice of taking discriminatory and restrictive measures against Chinese research institutions. China will take necessary measures to safeguard the legitimate rights and interests of Chinese research institutions.
What This Means for Foreign Founders in China
If you are a foreign founder setting up a company in China, particularly in sectors that involve research and development, you may be affected by evolving US-China research policies. Here are practical points to consider:
- Stay informed on policy developments: The MOFCOM response highlights ongoing tensions in research cooperation. Monitor official announcements from both Chinese and US authorities to understand any changes that could impact your business.
- Understand the "1286 list": While the source does not provide details on the list, it is referenced as a US mechanism affecting collaborations. If your Chinese entity or partners are involved in research with US institutions, clarify whether any entities are listed and seek legal advice.
- Assess collaboration risks: The US review resulted in termination of cooperation between some US universities and listed entities. If your company collaborates with US research institutions, review contracts and contingency plans.
- Leverage China's support: China has stated it will take necessary measures to protect the legitimate rights of Chinese research institutions. This may imply support for affected entities, but specific measures are not detailed in the source.
- Compliance with Chinese regulations: Ensure your company complies with Chinese laws and regulations, especially regarding foreign investment and research activities. The MOFCOM response does not introduce new regulations but reflects the government's stance.
Background on China-US Research Cooperation
The MOFCOM spokesperson emphasized that China-US research cooperation is mutually beneficial. The US actions are portrayed as detrimental to both sides. For foreign founders, this underscores the importance of diversifying research partnerships and being aware of geopolitical factors that may influence business operations.
While the source does not provide specific data or case studies, it indicates that the Chinese government views the US measures as discriminatory and restrictive. Foreign founders should consider how such policies might affect their ability to collaborate with certain entities.
Practical Steps for Foreign Founders
Based on the official response, here are actionable steps:
- Review your partnerships: If your company engages in research with US universities or entities, assess whether any partners have terminated cooperation with Chinese entities on the 1286 list. Understand the reasons and potential implications.
- Consult legal experts: Given the complexities of international research collaboration and national security reviews, seek legal advice to navigate compliance in both jurisdictions.
- Engage with Chinese authorities: If your research activities are affected, consider reaching out to relevant Chinese government agencies for guidance. The MOFCOM response suggests China is open to supporting legitimate research cooperation.
- Monitor official channels: Keep an eye on MOFCOM and other Chinese government websites for updates on policies related to research security and foreign investment.
It is important to note that the source does not provide specific instructions for foreign founders, but the MOFCOM statement reflects China's position on protecting its research institutions. Foreign founders should interpret this in the context of their own business activities.
Conclusion
The MOFCOM response to the US Defense Department's research security review underscores the Chinese government's opposition to restrictive measures against Chinese research entities. For foreign founders operating in China, staying informed and proactive in managing research partnerships is crucial. While the source does not offer direct guidance, understanding the official stance can help in strategic planning.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.