What’s new: The U.S. Commerce Department Wednesday added 12 Chinese companies onto its export-control list based on allegations of supporting Russia’s military and defense industries.
The Chinese companies, mainly distributors of electronic components based in Shenzhen and Hong Kong, were among 28 additions to the U.S. “Entity List,” restricting businesses from obtaining U.S. technology without American government authorization. The other companies named are based in Russia, Singapore, Spain, Syria, Turkey, the United Arab Emirates, and Uzbekistan.
The Chinese companies blacklisted include 3HC Semiconductors (HK) Co. Ltd., Allparts Trading Co. Ltd., STK Electronics (HK) Co. Ltd., Wynn Electronics Co. Ltd. and Yongli Electronic Components (Shenzhen) Co. Ltd. The companies didn’t comment.
The Commerce Department accused the companies of trying to evade export controls to obtain U.S. products in support of Russia’s military activities. Some of the entities assisted in procurement for Russian companies that have been subject to U.S. sanctions since Russia’s invasion of Ukraine.
The context: The Commerce Department has added about 400 entities to the list since February 2022 in connection with Russia, including five Chinese enterprises added in late February with businesses in electronic components and aviation.
Washington is also expanding export controls on Chinese companies amid intensifying technology competition between the two countries. In March, the Commerce Department added 28 Chinese companies to the Entity List, most of them in artificial intelligence and semiconductor businesses.
There are 639 Chinese entities on the Entity List, with more than 155 added during the Biden administration. Since July 2022, 53 Chinese entities have been added.
The Commerce Department said in February that it and other government agencies approved about 70% of export license applications involving China in the 2022 budget year.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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