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Wednesday, July 17, 2024

Washington announces new China sanctions

The US has blacklisted dozens of companies for allegedly providing support to Russia’s military and defense industrial base

The US government has imposed new trade restrictions on 42 Chinese companies that it accused of providing key materials, such as integrated circuits used in missile guidance systems, to the Russian defense industry amid the Ukraine crisis.

The US Department of Commerce announced the latest expansion of its export control list on Friday, adding dozens of Chinese entities and one from each of Estonia, Finland, Germany, India, Türkiye, the UK, and the United Arab Emirates. US exporters require special licenses, which are difficult to obtain, to ship goods to customers on the export control list.

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“We will not hesitate to act against parties, wherever located, that facilitate the sale of US-origin items to Russia’s military for its war against Ukraine,” Commerce Department official Alan Estevez said in a statement. “No matter how convoluted the trail may be or how many hands items are passing through, if US-origin items are finding their way to Russia’s military, we will work tirelessly to stop it.”

The export control list is part of Washington’s effort to stop US-derived technology from being passed on to Russia’s military and defense contractors. Microelectronic circuits that help guide missiles and drones to their targets are among the top concerns.

The companies added to the export control list on Friday account for a “significant portion” of the US-derived integrated circuits that have wound up in Russia this year, the Commerce Department claimed. “Today’s additions to the entity list provide a clear message: If you supply the Russian defense sector with US-origin technology, we will find out, and we will take action,” Assistant Secretary of Commerce Matthew Axelrod said.

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The department added that it would continue working with overseas allies to identify companies that are re-exporting US goods to the Russian defense industry.

A US intelligence report released in July claimed that China was providing crucial support for Russia’s military offensive in Ukraine, including navigation equipment and other technology with both defense and civilian applications. Chinese officials have countered that Beijing doesn’t sell weapons to either Russia or Ukraine, and it “prudently handles the export of dual-use items in accordance with laws and regulations.” The Chinese embassy in Washington has also noted that China’s trade relations with Russia are “above-board” and “shall be free from disruption or coercion by any third party.”