The U.S. Department of Commerce today placed 58 Chinese and 45 Russian companies on a “military end-user” list, restricting U.S. companies from trading with the companies, which include China Aero Engine Group and China Aviation Industry Corporation.
Commerce Secretary Wilbur Ross said the move is establishing new procedures to help exporters screen customers. He also said the Defense Department recognizes the importance of U.S. partnerships with global companies to combat the use of U.S. technology in destabilizing military programs by the Chinese Communist Party and Russia.
The Commerce Department’s Bureau of Industry and Security will amend the Export Administration Regulations to add a list of “military end users.
The first list includes 58 Chinese companies and 45 Russian companies that have been identified as having ties to the Chinese and Russian militaries. Future U.S. companies wishing to sell products to those on the list that may eventually be used for military purposes must first obtain a license.
The list includes eight institutions under the Aero-Engine Company of China, seven institutions under the Aviation Industry Corporation of China, and the Shanghai Aircraft Design and Research Institute (ADRI), etc. The Russian Foreign Intelligence Service (SVR) is also in the list.
This is another major move by the Ministry of Commerce to tighten controls on Russian and Chinese companies with close ties to the military, following the inclusion of companies such as China National Offshore Oil Corporation and SMIC and its 11 affiliates on the list of entities on the 18th.
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