In a recent development, the United States has added certain companies to the list of “Communist Chinese Companies”, which are either controlled or owned by the Chinese People’s Liberation Army. The Sunday Guardians reported that almost all these companies operate in India or are trying to get an entry into the Indian market. A list of the debarred companies was released on December 28th by the office of Foreign Assets Control (OFAC), which is a financial intelligence and enforcement agency of the US Treasury Department, a total of 35 Chinese companies have been identified as entities who are closely working with the PLA.
The blacklisted companies are Aero Engine Corporation of China, Aviation Industry Corporation of China (AVIC), China Academy of Launch Vehicle Technology (CALT), China Aerospace Science and Industry Corporation (CASIC), China Aerospace Science and Technology Corporation (CASC), China Communications Construction Company (CCCC), China Construction Technology Co. Ltd. (CCTC), China Electronics Corporation (CEC), China Electronics Technology Group Corporation (CETC), China General Nuclear Power Corp, China International Engineering Consulting Corp. (CIECC), China Mobile Communications Group, China National Chemical Corporation (ChemChina), China National Chemical Engineering Group Co., Ltd. (CNCEC), China National Nuclear Corporation, China National Offshore Oil Corporation (CNOOC), China North Industries Group Corporation (Norinco Group), China Nuclear Engineering & Construction Corporation (CNECC), China Railway Construction Corporation (CRCC), China Shipbuilding Industry Corporation (CSIC), China South Industries Group Corporation (CSGC), China Spacesat, China State Construction Group Co., Limited, China State Shipbuilding Corporation (CSSC), China Telecommunications Corporation, China Three Gorges Corporation Limited, China United Network Communications Group Company Limited, CRRC Corporation, Dawning Information Industry Co (Sugon), Hangzhou Hikvision Digital Technology Co., Ltd. (Hikvision), Huawei, Inspur Group, Panda Electronics Group, Semiconductor Manufacturing International Corp. (SMIC) and Sinochem Group Co Ltd.
The companies that are on the US list are now open to various levels of sanctions under the Executive Order 13959, signed on 12 November 2020 by US President Donald Trump, which addresses the “Threat From Securities Investments That Finance Communist Chinese Military Companies”. Apart from not being allowed to operate in the US, these companies’ business will be severely affected in nations having deep ties with the U.S.
The Executive Order, signed by Trump, had stated that the Chinese companies were financially helping the Chinese PLA. “The Key to the development of the People’s Republic of China (PRC) military, intelligence, and other security apparatuses is the country’s large, ostensibly private economy. Through the national strategy of Military-Civil Fusion, PRC increases the size of the country’s military-industrial complex by compelling civilian Chinese companies to support its military and intelligence activities. Those companies, though remaining ostensibly private and civilian, directly support the PRC’s military, intelligence, and security apparatuses and aid in their development and modernization. At the same time, those companies raise capital by selling securities to United States investors that trade on public exchanges both here and abroad, lobbying United States index providers and funds to include these securities in market offerings, and engaging in other acts to ensure access to United States capital. In that way, the PRC exploits United States investors to finance the development and modernization of its military,” reads the EO.
Comments