Economy

US restricts trade with 42 Chinese companies over support for Russian military

USA

On Friday, Oct. 6, the U.S. Department of Commerce added 42 Chinese companies to the government's export control list over their support of Russia's military and defense industrial base -- support that includes supplying U.S. integrated circuits, it said. Reuters.

Also, seven more companies from Finland, Germany, India, Turkey, the United Arab Emirates and Great Britain, which were added to the US export control list, received restrictions.

The circuits contain microelectronics used by Russia for precision guidance systems in missiles and drones launched against civilian targets in Ukraine, the US Commerce Department said in a statement.

"Today's additions to the List of Organizations send a clear message: if you supply the Russian defense sector with technology of American origin, we will know about it and take action." Assistant Secretary for Export Affairs Matthew Axelrod said in a statement.

China called the US actions "economic coercion and unilateral intimidation."

"The United States must immediately correct its wrongful practices and stop its unjustified crackdown on Chinese companies," - said the statement of the Ministry of Commerce of China.

Companies are added to the list of US entities if Washington considers them to be a threat to US national security or foreign policy. Suppliers are then required to obtain licenses, which are usually difficult to obtain, before shipping goods to listed entities.

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