dChan - Q Origins Project Archive

US Adds 58 Chinese-Military-Linked Entities to New Trade Blacklist

The United States has named 103 Chinese and Russian companies and entities to a new trade blacklist, banning them from acquiring U.S. technology. The Commerce Department released the new “Military End User” (MEU) list on Dec. 21, alleging that 58 Chinese and 45 Russian entities had ties to the two countries’ military forces. U.S. companies will now need to obtain a government license before they can “export, reexport, or transfer” goods to these blacklisted entities. Commerce Secretary Wilbur Ross said in a statement on Monday: “The Department recognizes the importance of leveraging its partnerships with U.S. and global companies to combat efforts by China and Russia to divert U.S. technology for their destabilizing military programs, including by highlighting red flag indicators such as those related to Communist Chinese military companies identified by the Department of Defense.” Many of the blacklisted Chinese companies are in the aviation and aerospace sector, such as Henan Aerospace Precision Machining. Seven subordinate institutes of China’s state-owned defense company Aviation Industry Corporation of China (AVIC) and eight subordinate institutes of state-owned aerospace manufacturer Aero-Engine Company of China (AECC) were also blacklisted.

AVIC was one of 35 Chinese companies identified by the Pentagon this year to have links to the Chinese military, formally known as the People’s Liberation Army. The designations were made under a requirement under section 1237(b) of the National Defense Authorization Act (NDAA), the annual defense spending bill. Other companies identified by the Pentagon included Chinese tech giant Huawei, railcar-maker CRRC, and semiconductor chipmaker SMIC. The MEU list is a part of a growing effort by the Trump administration to address threats posed by the Chinese Communist Party (CCP) through its state policy of “military-civil fusion.” A Chinese government agency named the Central Commission for the Development of Military-Civil Fusion was established in 2017 to oversee collaborations between the military and private sector to advance technology innovations. The State Department has warned on its website that the CCP strategy involves intellectual property theft in order to “achieve military dominance.” SMIC was singled out for participating in military-civil fusion, when it and ten of its related entities were among 59 Chinese companies placed on the so-called entity list by the Commerce Department last week.

The Commerce Department stated that more entities could be added to the MEU list in the future, and restrictions against the 103 entities will take effect on Dec. 22 after the list is published in the U.S. Federal Register. Additionally, the Commerce Department warned that U.S. companies should conduct “additional due diligence”; just because a company is not currently on the list, “does not imply that…[they] are exempt from regulatory prohibitions.” For example, Chinese military-linked companies named by the Pentagon but not on the MEU list could be subject to restrictions, the department said. On Tuesday, China’s foreign ministry spokesperson Wang Wenbin, responded to the MEU list during a daily briefing, stating that the United States should “immediately stop making mistakes.” Wang also said that China will react by taking “necessary measures.”

https://www.ntd.com/us-adds-58-chinese-military-linked-entities-to-new-trade-blacklist_543926.html