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US Says Five Chinese Companies Support Russia’s Military

US Commerce Department adds 36 companies to heavily restricted Entity List, including five based in China, claiming they continue to support Russian military despite Ukraine war sanctions.


Bilateral trade between China and Russia continues to be strong, the latest data released by China shows.
Chinese exports to Russia jumped in July after several months of declines. This file photo by AFP shows Russian leader Vladimir Putin, left, meeting with his Chinese counterpart Xi Jinping in 2018.

 

The US has added five companies in China to a trade blacklist, saying they support Russia’s military, as the US seeks to enforce sanctions against Moscow over its invasion of Ukraine.

The US Commerce Department, through its Bureau of Industry and Security (BIS), issued a statement saying it has added a total of 36 entities in nine countries to the Entity List, including six specifically for their continued support of Russia’s military efforts since export controls were imposed. Five of the new companies are based in China.

The BIS said the companies added to the US blacklist had supplied items to Russian “entities of concern” before Russia invaded Ukraine, adding that they “continue to contract to supply Russian entity listed and sanctioned parties.”

The 31 other entities the BIS added to the US blacklist are from countries including Russia, UAE, Lithuania, Pakistan, Singapore, the UK, Uzbekistan and Vietnam, according to the Federal Register entry.

“Today’s action sends a powerful message to entities and individuals across the globe that if they seek to support Russia, the United States will cut them off as well,” Under Secretary of Commerce for Industry and Security Alan Estevez said in the statement.

 

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China Denies Providing Military Support

Later on Wednesday, China denied providing military assistance to either party involved in the Russia-Ukraine conflict.

The Chinese Embassy in Washington said it firmly opposed sanctions imposed by the US on the five Chinese companies, according to the Global Times.

“China’s position on the Ukrainian issue is consistent and clear. We have been playing a constructive role in promoting peace talks and have not provided military assistance to the conflicting parties,” state media outlet said, citing a statement from the embassy.

Three of the companies in China accused of aiding the Russian military – Connec Electronic, Hong Kong-based World Jetta, and Logistics Ltd, could not be reached for comment. The other two, King Pai Technology and Winninc Electronic, did not immediately respond to requests for comment.

Hong Kong is considered part of China for purposes of US export controls after Beijing demolished the city’s autonomy.

The US blacklist means their suppliers need to apply for a Commerce Department licence to ship to them.

While US officials had previously said that China was generally complying with the restrictions, Washington has vowed to closely monitor compliance and rigorously enforce regulations.

“We will not hesitate to act, regardless of where a party is located, if they are violating US law,” Assistant Secretary of Commerce for Export Administration Thea Rozman Kendler said in the same statement.

 

  • Reuters, with editing by Neal McGrath and Jim Pollard.

Note: This report was updated, with the response from the Chinese Embassy in Washington, on June 29, 2022.

 

 

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Neal McGrath

Neal McGrath is a New York-based financial journalist. Neal started his career covering the Asia-Pacific region for the Economist Intelligence Unit, then joined Asian Business magazine. He's subsequently held a variety of editorial positions covering business, economics, finance and sustainability. Neal has lived and worked in Hong Kong, Singapore, Germany and the US.

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