The Biden administration blacklists Chinese companies for their ties to drones in Moscow and Tehran

The Biden administration blacklists Chinese companies for their ties to drones in Moscow and Tehran
  • The Entity List is a tool used by Washington to impose trade restrictions on entities that it deems threaten US national security.
  • It has recently been used to limit Chinese technology and punish involvement in the Russian war machinery.
  • China’s Ministry of Commerce said it strongly opposes the US blacklisting of Chinese companies.

A broken window is seen after Russia launched 33 drones towards the Kiev region, Ukraine on September 10, 2023. In a separate statement, the Ukrainian Air Force said Russia sent 33 Shahed drones towards Kiev and Ukrainian forces. I shot down 26 of them.

Anatolia Agency | Anatolia Agency | Getty Images

The Biden administration imposed new trade restrictions on 11 Chinese companies and five Russian companies on Monday, targeting foreign actors seen as threatening national security and angering Beijing.

The United States has accused Hong Kong-based export company Asia Pacific Lynx, three Finnish shipping, warehousing and logistics companies, three Russian entities and a German industrial equipment producer of involvement in a scheme to violate US export restrictions by supplying drone components to blacklisted countries. previously. Private technology center in Saint Petersburg, Russia.

These companies were among 28 additions to the US Entity List on monday. The US Department of Commerce’s Bureau of Industry and Security accused eight Chinese officials of purchasing or attempting to purchase US drone equipment for Iran, while two Omani entities were cited for supporting Houthi fighters in Yemen.

The list is a tool used by Washington to impose trade restrictions on entities it deems to threaten US national security, and has recently been used to limit Chinese technology and punish participation in the Russian war machine.

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“Our actions send a clear message to those who attempt to evade our export controls that there will be consequences for behavior that seeks to undermine U.S. national security interests,” Alan Estevez, Under Secretary of Commerce for Industry and Security, said in a statement.

He added: “We will not hesitate to take swift and targeted action against those who continue to seek and support Putin’s illegal and immoral war in Ukraine.”

None of the Chinese entities mentioned were able to immediately respond to CNBC’s requests for comment. CNBC was unable to reach a company spokesperson for comment, while some companies did not have public contact details.

“The United States is misusing unilateral sanctions and ‘long-arm jurisdiction’ to undermine international trade order and rules, obstruct normal international economic and trade exchanges, and harm the legitimate rights and interests of Chinese companies and individuals,” China’s Ministry of Commerce said in a statement. a permit Tuesday.

The Chinese Ministry of Commerce added: “The United States must immediately stop its unreasonable suppression of Chinese companies and individuals. China will take necessary measures to resolutely protect its legitimate rights and interests.”

CNBC’s Quek Jie Ann contributed to this story.

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