U.S. Adds Six More Companies to Trade Restriction List Over China Military Ties

On Tuesday, July 2nd, the United States made significant additions to its trade restriction list, including six companies. The expansion was prompted by the companies' involvement with China's military forces.

Companies Added to the List

The United States took action against four companies due to their connections with the training of China's military forces. The companies in question are Global Training Solutions Limited and Smartech Future Limited in China, Grace Air (Pty) Ltd and Livingston Aerospace Limited in the United Kingdom. Additionally, two companies in the United Arab Emirates and one in South Africa were also included in the list.

Reasons for Inclusion

The companies were added to the list over their ties to the Test Flying Academy of South Africa and the training of China's military forces using Western and NATO sources. The Test Flying Academy of South Africa had previously been put on the Entity List for training Chinese military pilots with Western and North Atlantic Treaty Organization sources.

Furthermore, two UAE companies, Mega Fast Cargo and Mega Technique General Trading, were added for evasive conduct. Mega Fast Cargo was found to have shipped U.S.-origin goods to Russia.

Implications and Statements

Companies on the Entity List, overseen by the U.S. Commerce Department, now require licenses to ship U.S. goods and technology, which are likely to be denied. A statement from Commerce official Matthew Axelrod emphasized the move as a means to enhance U.S. national security by preventing American know-how from aiding other countries' military forces.

The Commerce Department also added 13 companies to its Unverified List, including eight from China, due to incomplete on-site visits to determine their trustworthiness to receive U.S. origin technology and other goods.

Removal from the List

Simultaneously, the department removed eight companies from the Unverified List, including six from China, one from the United Arab Emirates, and one from Russia. This indicates the ongoing monitoring and assessment of companies regarding U.S. export control policies.

The Entity List and Unverified List serve as critical tools for the U.S. to safeguard its sensitive goods and technology, preventing them from ending up in unauthorized hands.