United States on Monday published a list of Chinese and Russian companies with alleged military ties that hinders them from buying a wide range of US goods and technology. The list of 103 entities were released on Monday. Fifty-eight are designated under China and 45 entities are tied to Russia.
Commerce Secretary Wilbur Ross said on Monday the action of Publishing the list establishes a new process "to assist exporters in screening their customers for military end users." This attempt makes the addition of dozens of Chinese companies to another U.S. trade blacklist, including the country`s top chipmaker, SMIC, and Chinese drone manufacturer SZ DJI Technology Co Ltd. The category includes not only the armed service and national police, but any person or entity that supports or contributes to the maintenance or production of military items - even if their business is primarily non-military.
US companies requires a license to sell to the firms due to the "military end user" designation, which are more likely to be denied than granted. Seven Aviation Industry Corporation of China (AVIC) subordinate entities are on the list. General Electric Co and Honeywell International have joint ventures with AVIC and supply COMAC, which is spearheading Chinese efforts to compete with Boeing Co and Airbus.
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