US President Donald Trump’s administration on Monday published a list of Chinese and Russian companies with alleged military ties that restrict them from buying a wide range of US goods and technology.
The US Department of Commerce last month drafted a list of companies that it linked to the Chinese or Russian military, news that brought a rebuke from Beijing.
The final list does not include Commercial Aircraft Corp of China (COMAC, 中國商用飛機), or the Hong Kong subsidiaries of Colorado’s Arrow Electronics Inc and Texas-based TTI Inc, a Berkshire Hathaway Inc electronics distributor.
Those firms were on a draft list.
However, the Shanghai Aircraft Design and Research Institute (上海飛機研究院), which designs COMAC planes, and Shanghai Aircraft Manufacturing Co (上海飛機製造), which manufactures COMAC planes, are on the list.
The final list names 103 entities, 14 fewer than on the draft list.
Fifty-eight are designated under China, down from 89, and 45 entities are tied to Russia, up from 28.
US Secretary of Commerce Wilbur Ross said that the action establishes a new process “to assist exporters in screening their customers for military end users.”
The list was published on the department’s Web site on Monday and was scheduled to be posted for public inspection in the US Federal Register yesterday.
The list follows the addition of dozens of Chinese companies to another US trade blacklist, including the country’s top chipmaker, Semiconductor Manufacturing International Corp (中芯國際), and drone manufacturer SZ DJI Technology Co (大疆創新) on Friday.
The list is not definitive and the department said that US companies must continue to do their own due diligence to help decide whether their buyers are considered military end users.
Chinese Ministry of Foreign Affairs spokesman Zhao Lijian (趙立堅) last month called news of the draft list “unprovoked suppression of Chinese companies by the United States.”
While COMAC was removed, seven Aviation Industry Corp of China (AVIC, 中國航空工業) subordinate entities remain on the list.
General Electric Co and Honeywell International Inc have joint ventures with AVIC and supply COMAC, which is spearheading Chinese efforts to compete with Boeing Co and Airbus SE.
This month, Arrow and TTI both denied that their subsidiaries have ties to the Chinese military and said they were working to be removed from any final list.
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