A more thorough explanation:

The Entity List is a list of foreign individuals, government organizations, and companies that are subject to specific license requirements for the export of certain items. It is maintained by the Bureau of Industry and Security (BIS) to control the export of commodities and related technology that could compromise U.S. national security.

Any transaction with an entity listed on the Entity List is considered a "red flag" by the U.S. government. This means that the transaction should be monitored more carefully for any illegal attempts to obtain commodities or related technology with military or proliferation applications.

• Chinese telecommunications company Huawei was added to the Entity List in 2019 due to concerns about its ties to the Chinese government and potential for espionage. This means that U.S. companies must obtain a specific license to export certain items to Huawei.
• Russian state-owned arms exporter Rosoboronexport has been on the Entity List since 2014 due to its involvement in the conflict in Ukraine. This means that any export of certain items to Rosoboronexport requires a specific license.

These examples illustrate how entities can be added to the Entity List for various reasons, such as national security concerns or involvement in conflicts. It also shows how any export to these entities requires a specific license, indicating that the U.S. government is closely monitoring these transactions.