The US Commerce Department took a significant step, placing 42 Chinese enterprises on its export control list. This decision was driven by the companies’ backing of Moscow’s military and defence sectors, specifically by providing U.S.-origin integrated circuits.
The Global Reach of US Export Controls
It wasn’t only Chinese entities that faced the US’s stringent measures. Seven more companies from diverse countries – Finland, Germany, India, Turkey, UAE, and the UK – were also added to the trade export control list. A major concern for the US was the utilization of these circuits in microelectronics. According to the Commerce Department, Russia deploys these for precision guidance in missiles and drones. These weapons have been used against civilian locales in Ukraine.
Matthew Axelrod, Assistant Secretary for Export Enforcement, didn’t mince words. He stressed, “If you supply the Russian defence sector with U.S.-origin technology, we will find out and take action.”
China Responds to US Actions
In response to the US move, China vehemently expressed its disapproval, labelling the US’s decision as “economic coercion and unilateral bullying”. The Chinese Ministry of Commerce further emphasized that the US should reevaluate and halt its “unreasonable suppression” of Chinese enterprises.
Highlighting the ongoing conflict, it has been a staggering 20 months since Russia’s invasion of Ukraine began. Recent developments include a Russian missile attack on a Ukrainian village, resulting in a devastating toll of at least 52 casualties, marking one of the conflict’s deadliest incidents.
Entities face inclusion in the U.S. Entity List when perceived as jeopardizing U.S. national security or foreign policies. This listing means suppliers must navigate the challenging process of securing licenses before trading with these entities.
