Trump administration identifies 89 Chinese firms for sanctions in draft list

Report would be latest anti-Beijing measure from US

The US is close to identifying 89 Chinese firms as having military ties, in the latest anti-Beijing measure from the outgoing Trump administration.

The list would restrict the 89 companies from buying a range of US goods and technology, according to a draft declaration seen by Reuters.

If published, companies included in the list would be identified by the US as “military end users,” which would force American firms to seek licenses to sell items to them.

Reuters reports that applications for the licenses are more likely to be denied than approved by the US government.

If the list is published, it could damage the US’ trade relationship with Beijing and limit American companies that sell parts and components to Chinese firms.

The Chinese aviation industry dominates the draft list, as Commercial Aircraft Corp of China Ltd (COMAC) and the Aviation Industry Corporation of China (AVIC), along with 10 of its related entities, are included.

COMAC is currently leading China’s efforts to compete with the US-based aviation company Boeing and the European firm Airbus.

Boeing is waiting on Chinese approval for its 737 Max airplane, after it was approved by the US last week. China grounded the jet in 2019 following two fatal crashes.

In recent months, outgoing US President Donald Trump has stepped up his actions against China and Chinese companies.

The list follows an executive order from Mr Trump 10 days ago, which banned US investment in Chinese companies that are deemed to be controlled by the country’s military.

The order came after the US Department of Commerce expanded the definition of “military end users” in April, to include any person or entity that contributes to the maintenance or production of military items. The business does not need to be primarily military related to be included.

Parts including brackets for flight control boxes, word processors and plane engines could all be classified as military products under the executive order.

Washington trade lawyer Kevin Wolf, a former Commerce official, told Reuters that the list should have been kept confidential, but said that it can still be modified.

In order for the outgoing Trump administration to publish the list, it needs to be cleared and sent to the Federal Register by the middle of December.

The draft report states that the list is “vital for protecting US national security interests,” but an anonymous former US official criticised it, telling Reuters that “merely creating a list and populating it is a provocative act”.

An aerospace industry source added that it could cause China to retaliate.

The Independent has contacted the US Department of Commerce and the Chinese foreign ministry for comment.