US Designates Companies from China, Russia, and 27 Other Countries on Blacklist

[Asia Economy Reporter Hyun-ui Cho] The U.S. Department of Commerce announced a list of companies subject to export controls due to threats to national security. A total of 27 countries, including 12 Chinese companies, as well as companies from Japan, Pakistan, Singapore, and Russia, were included.

The Bureau of Industry and Security (BIS) of the Department of Commerce stated on the 24th (local time), "These companies have been finally selected for engaging in activities contrary to U.S. national security or foreign policy."

Commerce Secretary Gina Raimondo said in a statement, "Trade should contribute to peace, prosperity, and good job creation, and must not become a security threat," adding, "This action will help prevent U.S. technology from being transferred to Chinese and Russian military forces or contributing to Pakistan's nuclear proliferation." Secretary Raimondo emphasized, "The Department of Commerce will effectively use export controls to protect national security."

According to the Department of Commerce, among the regulated companies, eight Chinese firms were included on the control list to protect quantum computing and encryption technologies used for developing anti-stealth and anti-submarine weapons. The Department stated these companies were involved in the modernization of the Chinese People's Liberation Army and the acquisition of weapons for which the U.S. holds foundational technology.

Sixteen companies were selected for regulation due to activities related to Pakistan's nuclear and ballistic missile development. The Chinese-affiliated Korad Technologies was named for allegedly selling advanced technology to Iran, including through North Korean shell companies.

Companies on the control list face restrictions on the export and re-export of all items subject to the Export Administration Regulations (EAR), and must obtain licenses to handle these items.

China strongly opposed the move. Foreign Ministry spokesperson Zhao Lijian said on the 25th, "The U.S. has generalized the concept of national security and abused its national power to pressure Chinese companies," criticizing, "This seriously damages the interests of Chinese companies, arbitrarily destroys the international order and economic and trade order, and seriously threatens the global industrial supply chain."

He added, "China firmly opposes the U.S. measures and demands that the U.S. immediately correct its mistakes," and stated, "China will take necessary measures to protect the legitimate rights and interests of Chinese companies."

Xu Zeyu, spokesperson for the Chinese Ministry of Commerce, also said at a regular briefing that day, "The U.S. Department of Commerce's announcement of the new sanctions list does not align with the common understanding of the leaders of China and the U.S.," arguing, "This is not helpful for the stability of the China-U.S. relationship, the global supply chain, or the recovery of the world economy."

Since the Biden administration took office, the U.S. has increased comprehensive pressure on China while also focusing on international cooperation in cybersecurity with countries such as Russia.

The Department of Commerce is currently preparing separate regulations requiring companies that sell U.S. products or are U.S. companies to obtain approval from the Bureau of Industry and Security when exporting technologies and products that could be abused for malicious cyber activities or civilian surveillance, such as hacking.

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