US Entity List: Impact of Blacklisted Chinese Companies Supporting Russian Military

2023-10-07 03:00:09

According to a document released by the U.S. Business Bureau on Friday (6th), the United States has blacklisted 42 Chinese companies out of 49 companies around the world because they violated U.S. sanctions and sold U.S.-made microchips to Russia.

The United States accuses these companies of supporting the Russian military and defense industry, including providing Russia with integrated circuits originating in the United States. These microchips are used in navigation engines in missiles and drones launched once morest Ukrainian civilians.

The export, re-export and transshipment of these wafers within Russia will be controlled starting September 15, 2022, and the company will need to seek specific licenses for any sales to Russia or Belarus.

The blacklist under the Department of Commerce’s Entity List means that U.S. companies need to apply for a license from the government to continue selling products to these companies.

In addition to 42 Chinese companies, 7 other entities have also been included in the export control list by the United States, including 3 Indian companies and 2 Turkish companies on the blacklist, and 1 each from Estonia, Finland, Germany, the United Arab Emirates, and the United Kingdom. company.

Federal Register documents say all are accused of engaging in activities “contrary to the national security or foreign policy interests of the United States.”

Matthew Axelrod, the U.S. Assistant Secretary of Commerce for Export Enforcement, said that this entity control list sends a clear message that if any country provides U.S.-origin technology to Russia, the United States will take action once discovered.

The U.S. move comes as the U.S.-China trade war intensifies, with the Biden administration banning the export of technology for manufacturing high-end chips to China and Beijing banning U.S. chipmaker Micron Technology from selling products in the Chinese market.

42 Chinese companies involved in supporting the Russian military industry were included in the US Entity List (Photo: shutterstock)

The United States calls on China not to support Russia’s invasion of Ukraine and sets arms transfers as a red line. But officials also said they did not necessarily consider small shipments by private Chinese companies to constitute violations.

A spokesman for the Chinese Ministry of Commerce pointed out on September 27 that the United States has included some Chinese entities in the export control “entity list” to impose sanctions on the grounds of so-called military involvement, Iraq involvement, and Russia involvement. China firmly opposes this.

China says that the United States overextends national security, abuses export control measures, and uses state power to attack companies and individuals in other countries. This is a typical act of economic coercion and unilateral bullying. The United States should immediately correct its wrong practices and stop its unreasonable suppression of Chinese companies and individuals.

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