Navarro called the apparent leak “fake news” as an answer, but the post office claimed that several insiders had seen printouts of the potential order.
If such an order were executed, it would raise many concerns about possible abuse of power. It is not clear how many violations would be required to reach the entity list. If the threshold were too low, the US government and companies could impose politically motivated bans on minor or controversial offenses. The move could also result in the federal government effectively deciding on the importance of a particular IP case. Copyright and patent infringers often avoid admitting misconduct in settlements, but the US could decide that they are still guilty and put the settlements on a possible blacklist.
There are also consequences for the expansion of power and the possibility of retaliation. The entity list is meant to address security threats and non-economic threats, and the US government may need to falsify itself to justify this strategy, if possible. Meanwhile, China could not respond well. Although there has been reports of advances in the protection of American technology, the Chinese government could retaliate if it believes the blacklist is too strict. And while some companies may change their technology to reach the American public, others may just ignore the US market and sell infringing products elsewhere.