U.S. to Restrict 89 Chinese Military-Linked Companies

The U.S. government is about to announce that it will restrict the purchase of U.S. products and technology by 89 companies in the aerospace and other sectors linked to the Chinese military, Reuters has exclusively revealed.

The list was compiled by the U.S. Department of Commerce, which did not respond to media inquiries.

The list includes Commercial Aircraft Corporation of China (COMAC), Aviation Industry Corporation of China (AVIC), and 10 of its affiliated entities, with COMAC being the front-runner to compete with Boeing and Airbus.

According to the Reuters report, the list is included in a draft rule that would distinguish between Chinese and Russian companies that are considered “military end users”; under the rule, companies would have a higher chance of having their license applications rejected.

Reuters believes that the announcement of the list will further intensify trade tensions between China and the U.S., as well as impact U.S. companies, including General Electric and Honeywell, that supply to Chinese companies.

Chinese Foreign Ministry spokesman Zhao Lijian said on Monday that he firmly opposed the U.S. approach, accusing the United States of violating free market principles and international norms.