Daily Management Review

US Designates 89 Chinese Firms With Military Ties In New Drafted Sanction List


US Designates 89 Chinese Firms With Military Ties In New Drafted Sanction List
89 Chinese aerospace and other companies are set to declare to have close ties with eth Chinese military, according to the Trump administration and will be restricting them from acquiring and purchasing a range of goods and technology developed by American companies or individuals, claimed a report from the news agency Reuters citing information from a draft copy of the list.
The publishing of the list and implementing the restrictions poses the threat of further aggravating the already strained ties with China and adversely impact those American companies as well that sell civil aviation components to Chinese companies, among other sectors.
No comment on the news was available from the US Department of Commerce which has prepared the list.
China “firmly opposes the unprovoked suppression of Chinese companies by the United States”, said Chinese Foreign Ministry spokesman Zhao Lijian speaking in Beijing. He added that the principle of market competition and international norms for trade and investment that the US itself claims to vigorously uphold was severely violated by what the United States was doing.
Zhao said that when operating overseas, including in the United States, Chinese companies have always functioned in accordance with the law and strictly follow local laws and regulations.
Commercial Aircraft Corp of China Ltd (COMAC), the aircraft making company that is being pitted by China to rival US’s Boeing and the European aircraft maker Airbus, as well as Aviation Industry Corporation of China (AVIC) and 10 entities related to the company are included in the list, the Reuters report claimed. 
A draft rule that identifies Chinese and Russian companies that the US administration considers to be “military end users” also has the latest list prepared by the US. Such designation of companies by the US means that special licenses needs to be obtained by YUS suppliers to sell a wide range of commercially available products to them.
It is more likely that any such application for special licenses will be denied rather than granted according to the rule.
In recent months, his actions against China have been stepped up by the US president Donald Trump.  An executive order that prohibits US investments in Chinese companies that are considered to be owned or controlled by the Chinese military according to the US administration was issued by Trump 10 days ago.
In April, the Commerce Department expanded the definition of “military end user” after which this latest list was prepared. Any individual or entity that supports or contributes to the maintenance or production of military items – even if the primary business of such individuals or entities is non-military, is included in the April rule, in addition to armed service and national police.
The range of items included in the list of export restricted list includes a wide range of items – from computer software like word processing, scientific equipment such as digital oscilloscopes, to aircraft parts and components.