Xinhua News Agency reported that the U.S. Department of Commerce's Bureau of Industrial Security (BIS) recently announced that it would add a number of Chinese companies to its export control list, accusing them of supporting Russian military activities. This move has aroused strong opposition from the Chinese government. The Chinese government believes that this is an unreasonable sanction against Chinese companies and accuses the United States of undermining international trade order and rules and affecting the security and stability of global industries and supply chains.
Block Russia! US export controls tightened
The U.S. government has recently expanded the scope of export controls and strengthened restrictions on Russian technology and products.
According to a previous statement by BIS, the new restrictions expand the scope of application of the "Direct Export Product Principle (FDP)" and the "Military End User List (MEU)" to include entities outside Russia and Belarus. The companies are accused of assisting Russia in procuring U.S.-origin and U.S.-branded products and supporting its military operations in Ukraine.
In addition, in order to prevent evasion of export controls, the United States will also strictly control U.S.-made CNC machine equipment and software imported to Russia and prevent software updates from being provided to Russia and Belarus.
"We will continue to take multiple approaches to address this issue from all fronts and use all means to prevent Russia from obtaining the advanced U.S. process technology it needs for its weapons," said Alan Estevez, deputy secretary of commerce at the Bureau of Industry and Security.
Many new companies have been subject to export controls, with as many as 42 in China
In this action, BIS added 123 entities to the export control list, including 63 companies in Russia and Crimea, 42 companies in China and Hong Kong, and 14 companies in Turkey, Iran, and Cyprus. company. These companies have been placed on the control list for repeatedly delivering U.S.-made products to Russia and engaging in other activities that violate U.S. security and foreign policy interests.
Thea D. Rozman Kendler, Secretary of Export Administration of the U.S. Department of Commerce, said: "This action is an important step towards 'restricting Russia's procurement network.' We will not stop until Russia is pushed to the edge."
It is forbidden to wash the place of origin! U.S. cracks down on illegal transshipments
To prevent illegal transshipments through shell companies and other high-risk channels, BIS added four high-risk addresses in Hong Kong and Turkey to the control list, requiring transactions involving these addresses to require permission. These addresses are used to cover illegal transshipments of U.S.-made products into restricted countries.
In places such as Hong Kong or Turkey, some companies will provide addresses for customers to send and receive goods and bills. Although these companies themselves have legitimate business purposes, some criminals will use these companies to transfer items to prohibited countries or restricted objects.
BIS will provide guidance to these companies to help them avoid providing services to these criminals, carefully vet customers who ship goods to Russia, Iran and other embargoed locations, and check whether the shipping location is on the U.S. government’s restricted list.
BIS has also provided some guidelines for U.S. exporters to ensure that overseas customers understand (Export Administration Regulations EAR). This regulation explains: "A commodity will continue to apply after it is initially exported, and most commodities cannot be exported without a BIS license." Re-export to Russia. Similar to the EU’s “no re-export to Russia” clause to ensure that their goods are not diverted to Russia or Belarus.
Matthew S. Axelrod, Assistant Secretary for Export Enforcement of the Department of Commerce, said: "We have cracked down on more than 100 shell companies and forwarders that secretly help Russia carry out illegal aggression, and more than half of the companies are located outside Russia. I want to remind everyone that no matter you If you ship these controlled goods to Russia from China or Turkey, you may be next on the entity list!”
Strong response from the Chinese government
A spokesman for the Chinese Ministry of Commerce said that the US actions were "unilateral sanctions" that undermined international trade rules and order and affected the security and stability of global industries and supply chains. The Chinese government demands that the United States immediately stop these wrongful actions and says it will take necessary measures to protect the legitimate rights and interests of Chinese companies.
The impact of sanctions on Russia
The U.S. Departments of State, Treasury and other departments have joined forces to prevent Russia from obtaining the materials needed to make weapons from other countries. Sanctions have significantly affected Russia's weapons-making capabilities, forcing it to rely on low-tech, obsolete materials and pay prices two to four times higher than before the war. Although Russia has attempted to increase military production, shortages of materials and equipment have prevented it from meeting set production targets.
This action by the United States shows its determination to increase pressure on Russia and its support system, and also indicates that trade and political friction between China and the United States may further intensify.
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This article is suspected of assisting Russia! The United States has placed many Chinese companies under control, and China has issued a strong protest. First appeared on Chain News ABMedia.