Why US added five companies in China to trade blacklist
- The Commerce Department also added another 31 entities to the blacklist
- Of the 36 companies added, 25 had China-based operations
- Connec Electronic Ltd, Hong Kong-based World Jetta are among the five companies
US President Joe Biden’s administration had named five companies in China that are now part of a trade blacklist. On Tuesday, the US claimed that these companies are supporting Russia’s military and defense industrial base.
The Commerce Department, which oversees the blacklist, said the targeted companies had supplied items to Russian “entities of concern” before the Feb. 24 invasion, adding that they “continue to contract to supply Russian entity listed and sanctioned parties.”
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The agency also added another 31 entities to the blacklist from countries that include Russia, UAE, Lithuania, Pakistan, Singapore, the United Kingdom, Uzbekistan and Vietnam, according to the Federal Register entry.
Of the 36 companies added, 25 had China-based operations.
“Today’s action sends a powerful message to entities and individuals across the globe that if they seek to support Russia, the United States will cut them off as well,” Under Secretary of Commerce for Industry and Security Alan Estevez said in a statement.
Chinese foreign ministry spokesman Zhao Lijian neither confirmed nor denied the accusations of these companies supplying items to Russia’s military.
“China and Russia carry out normal trade cooperation on the basis of mutual respect and mutual benefit. This should not be interfered with or restricted by any third party,” Lijian told a press conference in Beijing on Wednesday, according to Reuters.
Meanwhile, the Chinese embassy in Washington responded saying that Beijing had not provided military assistance to Russia or Ukraine. It also said that “necessary measures” will be taken to protect the rights of its companies. The embassy also slammed the sanctions, saying that it violate violate international law.
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The five companies in China accused of aiding the Russian military are Connec Electronic Ltd, Hong Kong-based World Jetta, Logistics Limited, King Pai Technology Co, Ltd and Winninc Electronic.
The firms’ blacklisting means their US suppliers need a Commerce Department license before they can ship items to them.
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