U.S. Department of Commerce Announces List of “Military End Users” 58 Chinese Entities on the List

The United States on Monday (Dec. 21) released a list of Chinese and Russian entities with alleged ties to the military that would restrict these companies from purchasing a range of U.S. products and technologies.

The list names 103 entities, including 45 Russian and 58 Chinese entities.

Entities such as the China Academy of Space Power Technology (AASPT), seven entities under the Aviation Industry Corporation of China (AVIC) and eight entities under the Aero Engine Corporation of China (AECC) are on the list.

Commerce Secretary Ross said, “This action establishes a new process for designating military end-users on the ‘Military End User’ list (MEL) to assist exporters in screening their customers for military end-users.”

A Commerce Department press release also noted that “the ‘Military End User’ List informs exporters, re-exporters, and transferors that a license will be required to export, re-export, or transfer (domestic) designated items to entities on the list.”

The list will be published Tuesday in the Federal Register for public review.

Dozens of Chinese companies have recently been added to the U.S. trade blacklist, including China’s largest chipmaker Semiconductor Manufacturing International (SMIC) and Chinese drone maker DJI Innovation Technology Co.

Reuters reported last month that the U.S. Commerce Department had drafted a list of entities with ties to the Chinese or Russian military and would restrict their purchases of U.S. products and technology. Chinese Foreign Ministry spokesman Zhao Lijian said he was “firmly opposed” to the idea.

The U.S. Department of Commerce expanded the definition of “military end-user” in April this year. Reuters reported that the April rule covers not only the armed forces and police, but also any person or entity that supports or assists in the maintenance or production of military goods, even if their business is primarily for non-military purposes.