US Blacklists 42 Chinese Entities for Aiding Russia's Defense Industry

The companies allegedly supplied U.S.-origin integrated circuits to Russia's military and defense industry.

Department of Commerce building in Washington on April 10, 2023. 

The U.S. Department of Commerce said Friday that it has added 42 Chinese entities to the export control list for allegedly supplying U.S.-origin integrated circuits to Russia's military and defense industry.

A total of 49 entities were added to the entity list. Of these, 42 were based in China, and the rest were based in Estonia, Finland, Germany, India, Turkey, the United Arab Emirates, and the United Kingdom.

These companies were accused of providing microelectronics to Russia, which Russia uses for precision guidance systems in missiles and drones launched against civilian targets in Ukraine, the department stated (pdf).

Alan Estevez, Under Secretary of Commerce for Industry and Security, said the United States will not hesitate to act against parties "that facilitate the sale of U.S.-origin items to Russia's military for its war against Ukraine."

"No matter how convoluted the trail may be or how many hands items are passing through, if U.S.-origin items are finding their way to Russia's military, we will work tirelessly to stop it," Mr. Estevez said in a statement.

Assistant Secretary of Commerce for Export Administration Thea Rozman Kendler said the 49 blacklisted entities accounted for "a significant portion" of the U.S.-origin integrated circuits that were shipped to Russia from March through July.

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Companies are added to the entity list when Washington deems they pose a threat to U.S. national security or foreign policy. Suppliers will need to apply for a special license—which is generally hard to obtain—in order to ship goods to entities on the list.

"Today’s additions to the Entity List provide a clear message: if you supply the Russian defense sector with U.S.-origin technology, we will find out, and we will take action," Assistant Secretary for Export Enforcement Matthew Axelrod stated.

"But we also need the help of industry—we need you to exercise extra caution when shipping high-priority items to customers abroad, to help ensure those customers aren’t then funneling those items to Russian missile and drone programs.”

The United States has been using the entity list to target China's tech sector and attempt to stymie Russia's war in Ukraine. Last month, the department added 11 Chinese and five Russian companies to the entity list for supplying components to make drones for the Russian army.

China Likely Providing Support to Russia's Military

China’s communist regime is likely providing Russia with military and dual-use technology for use in Ukraine, according to an unclassified report (pdf) compiled by the Office of the Director of National Intelligence (ODNI) in July.

“[China] is providing some dual-use technology that Moscow’s military uses to continue the war in Ukraine, despite an international cordon of sanctions and export controls,” the report says.

“The customs records show [China’s] state-owned defense companies shipping navigation equipment, jamming technology, and fighter jet parts to sanctioned Russian Government-owned defense companies," it added.

The Chinese Communist Party (CCP), which rules China as a single-party state, has denied sending any military equipment to Russia. However, the two authoritarian powers have vowed to uphold a “no-limits” partnership throughout the war.

Secretary of State Antony Blinken said on June 19 that there was no evidence suggesting that the Chinese regime has transferred weapons or provided lethal aid to Russia, but there were concerns about Chinese firms providing Russia with technology that could be used against Ukraine.

"What we are concerned about is private companies in China that may be providing assistance, in some cases dual use, in some cases clearly directed at enhancing Russia's military capacity in Ukraine," he said.

Pentagon press secretary Brig. Gen. Patrick Ryder said on Feb. 24 that while there was no evidence of China directly sending weapons to Russia, the CCP had not ruled out such a possibility.

https://www.theepochtimes.com/china/us-blacklists-42-chinese-entities-for-aiding-russias-defense-industry-5505696