US adds 42 more Chinese companies to its ‘entities’ economic blacklist, saying they aided Russia’s war in Ukraine

The US Commerce Department added 42 Chinese businesses to its export blacklist on Friday for supporting Russia’s military and defence industrial base as Moscow wages war on Ukraine.

The companies, which included semiconductor industry players in Hong Kong and mainland China, are accused of supplying importers connected to the Russian military sector with US-origin integrated circuits after March 1, 2023.

Russia relies on microelectronics for precision guidance systems in its missiles and drones, the department said.

Seven entities from Britain, Estonia, Finland, Germany, India, Turkey and the United Arab Emirates were also added.

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US warns China of ‘serious consequences’ if it supplies weapons to Russia for Ukraine war

“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,” Alan Estevez, the department’s industry and security undersecretary, said in a statement.

The companies added on Friday produce circuits identified in “Tier 1” of the Common High Priority Items List developed by the US, European Union, Britain and Japan. The list covers “items of the highest concern” because of their role in the production of advanced precision-guided weapons systems.

US companies are barred from selling to companies on the department’s “entity list” unless exporters secure a licence from the US government.

US hits Chinese and Russian firms over Moscow military aid

In September, the Commerce Department added 11 Chinese companies to the same trade blacklist for supplying components to make drones for the Kremlin’s war efforts.

Friday’s announcement came a day after a Russian missile attack on the Ukrainian village of Hroza, one of the deadliest on civilians since the war started some 19 months ago.

It also came as the US and China were potentially moving closer to setting up a meeting between US President Joe Biden and Chinese President Xi Jinping at the Asia Pacific Economic Cooperation summit next month.

Xi has not yet committed to attend, but on Thursday, Bloomberg reported that delegations from both countries have been scouting meeting sites in San Francisco, where the conference will take place.

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Xi last met with Biden at the G20 summit in Indonesia in November 2022, but has skipped several recent international gatherings, including the G20 summit last month in India.

Ahead of Commerce Secretary Gina Raimondo’s visit to Beijing in August, the department removed 27 Chinese entities from its “unverified” list, which subjects companies whose identity and business purposes the US has been unable to verify to more stringent scrutiny than normal before they may do business with US suppliers.

South China Morning Post