USA publishes list of Chinese and Russian companies with military ties

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A New Process “To Help Exporters Check Their Customers For Military End Users”: Wilbur Ross

The Trump administration on Monday released a list of Chinese and Russian companies with alleged military ties preventing them from buying a wide range of U.S. goods and technology.

Reuters first reported last month that the U.S. Department of Commerce had compiled a list of companies associated with the Chinese or Russian military. This news brought a reprimand from Beijing.

The final list does not include Commercial Aircraft Corporation of China (COMAC), nor the subsidiaries of Arrow Electronics of Colorado and TTI Inc of Texas, an electronics distributor in Berkshire Hathaway. These companies were on Reuters’ draft list.

However, on the list are Shanghai Aircraft Design and Research Institute, which designs COMAC airplanes, and Shanghai Aircraft Manufacturing Co, which makes COMAC airplanes.

The final list includes 103 companies, 14 fewer than on Reuters’ draft list in November. Fifty-eight are named under China (out of 89), and 45 out of 28 companies are tied to Russia.

Trade Secretary Wilbur Ross said on Monday that the operation introduced a new process “to help exporters screen their customers for military end-users”.

The final list was published on the Commercial Department website on Monday and should be entered in the federal register for public inspection on Tuesday.

The release of the list in the final days of the Trump administration follows the addition of dozens of Chinese companies to another U.S. trade blacklist, including the country’s leading chip maker, SMIC, and drone maker SZ DJI Technology Co Ltd on Friday.

Tensions between the United States and China increased over the past year as Trump blamed them for the coronavirus pandemic, China imposed a national security law in Hong Kong and a dispute over the South China Sea deepened.

The US government is also increasingly concerned about China’s “military-civilian merger,” a policy aimed at jointly building its military might and technological development.

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In the spring, the Commerce Department expanded the definition of “military end-users” as the department defined the companies with military ties.

The category includes not only military service and the national police force, but also any person or organization that supports or contributes to the maintenance or production of military items – even if their business is primarily non-military.

The term “military end user” requires US companies to obtain licenses to sell to the companies that are denied rather than granted.

The list is not final, and Commerce said U.S. companies will still need to do their own due diligence to determine if their buyers are considered military end-users.

The publication of the list is likely to upset China. His State Department spokesman Zhao Lijian called the news of the draft list “unprovoked US suppression of Chinese companies” in November.

While COMAC has been removed, seven subsidiary companies of Aviation Industry Corporation of China (AVIC) remain on the list.

General Electric Co and Honeywell International both have joint ventures with AVIC supplying COMAC, which is leading China’s efforts to compete with Boeing Co and Airbus.

This month, Arrow and TTI denied their subsidiaries had ties to the Chinese military, saying they would work to be removed from the final list.

(This story was not edited by GossipMantri staff and is automatically generated from a syndicated feed.)

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