The list published by the Department of Commerce with more than 100 companies of Chinese and Russian origin with military ties, will be absolutely forbidden to buy a wide range of U.S. products and technology. The decision is in line with President Trump’s policies to limit the advance of communism in America, while not allowing local technology to be used for the military growth of the Chinese and Russian armies.
The U.S. Office of Industry and Security amended the Export Administration Regulations, adding a new list it called Military End Users. As a first step, 103 international companies linked to China and Russia were included that will now have limited purchase of U.S. technology.
Secretary of Commerce Wilbur Ross said in a dialogue with Fox News that the measure establishes a new process to “guide exporters to evaluate their customers for companies with military purposes. The “military end-user” designation requires that U.S. companies obtain a special license that enables them to market to such companies.
Ross stressed the importance of building ties between the government and U.S. and global companies to generate a joint effort to combat the intentions of the Chinese Communist Party (CCP) and Russia to divert U.S. technology for their destabilizing military programs and prevent the advance of communism worldwide.
The published list includes 58 companies with ties to the CCP and 45 with ties to Russia. The list is available on the Commerce Department’s website and will be publicly displayed in the Federal Register starting Wednesday.
Joining efforts to limit the advance in the United States of international companies with spurious interests, in November Rep. Mike Gallagher (R-Wis.), presented a new bill that aims to prohibit U.S. capital to be invested in Chinese companies listed on the so-called List of Entities of the Department of Commerce, a list of companies that face U.S. restrictions for various types of violations of national security.
During an interview with Fox News, Gallagher said, “We’ve seen that the Chinese Communist Party is engaged in a relentless campaign to dominate critical technologies.” He added, “As we’ve seen time and again, the CCP exploits our fair and open system in order to dominate those technologies using American capital to finance its malign agenda.”
The project presented is in line with the executive order also signed in November by President Trump. Americans were prohibited from investing in a group of 31 Chinese companies that, according to the Department of Commerce, supply and support the Chinese military.
The companies affected include China Telecom, China Mobile, and China Unicom, all large firms listed on major stock exchanges.
President Trump was decisive when he presented his recent executive order, “People’s Republic of China (PRC) is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses, which continues to allow the PRC to directly threaten the United States homeland and United States forces overseas.”