US Announces List of Chinese and Russian Military-Related Companies... Additional Sanctions on Chinese Officials

Unstoppable Trump Administration's Criticism of China

Wilbur Ross, U.S. Secretary of Commerce
Photo by AP News

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. Department of Commerce has announced a list of companies related to the military sectors of China and Russia and imposed sanctions restricting transactions between these companies and U.S. firms. The State Department also announced additional sanctions against Chinese officials and Communist Party members, indicating that the Trump administration's crackdown on China continues unabated with just one month left in its term.

On the 21st (local time), the Department of Commerce designated 103 Chinese and Russian companies as "Military End User" companies. Among them, 85 are Chinese companies and 45 are Russian companies.

According to the Commerce Department's announcement, seven related companies of the Chinese fighter jet manufacturer Aviation Industry Corporation of China (AVIC) were included on the list. Russian state-owned defense company Rostec and aircraft manufacturer Sukhoi were also included. U.S. companies must obtain special permission from the Department of Commerce to conduct transactions with these companies, effectively banning such transactions.

In April, the Department of Commerce announced regulatory changes requiring U.S. companies to obtain military sales licenses when exporting civilian goods to China and requiring foreign companies to get U.S. government approval when transporting certain U.S. products to China. Last week, the Commerce Department also added 77 companies, including 60 Chinese firms such as drone manufacturer DJI and semiconductor foundry SMIC, to the trade blacklist.

Commerce Secretary Wilbur Ross explained, "This measure allows U.S. exporters to preemptively identify transactions that may be used for military purposes."

Secretary Ross also emphasized, "The Department of Commerce recognizes how important it is to work with U.S. allies and global companies to prevent attempts to strengthen military power using U.S. technology." This is interpreted as a subtle indication that other countries besides the U.S. should join in these measures.

On the same day, Secretary of State Mike Pompeo announced visa restrictions on Chinese officials and Communist Party members suspected of being responsible for or involved in various human rights violations. The State Department did not disclose who is targeted by these sanctions.

Previously, the State Department imposed sanctions on Hong Kong Chief Executive Carrie Lam and 11 Hong Kong and Chinese officials for human rights violations related to the implementation of the Hong Kong Security Law. They were banned from entering the U.S., and their assets in the U.S. were frozen. U.S. banks and financial institutions are also prohibited from conducting transactions with them. Those on the sanctions list and their immediate family members are barred from entering the U.S. Due to these sanctions, Chief Executive Lam is experiencing difficulties such as being unable to conduct financial transactions or use credit cards within Hong Kong.

This content was produced with the assistance of AI translation services.