US toughens export rules by blacklisting Chinese and Russian firms

The Bureau of Industry and Security (BIS) in the US Department of Commerce announced on 21 December that it has added a new Military End User (MEU) list to the Export Administration Regulations.

A total of 58 Chinese and 45 Russian companies, such as Chinese aviation conglomerate AVIC and its subsidiaries as well as Russian defence giant Rostec, were deemed to represent an unacceptable risk of use in or diversion to military recipients in China, Russia, or Venezuela.

Commerce Secretary Wilbur Ross said: ‘The Department recognizes the importance of leveraging its partnerships with US and global companies to combat efforts by China and Russia to divert US technology for their destabilising military programmes, including by highlighting red flag indicators such as those related to Communist Chinese military companies identified by the Department of Defense.’

The MEU List informs US exporters and re-exporters that a licence will be required to export, re-export, or transfer (in-country) designated items to listed entities.

While the initial MEU list includes 103 companies, additional parties may be added or deleted according to a determination made by the End-User Review Committee. This is an interagency body comprising the Departments of Commerce, Defense, Energy, State and (where appropriate) the Treasury.

As part of our promise to deliver comprehensive coverage to our Defence Insight and Premium News subscribers, our curated defence news content provides the latest industry updates, contract awards and programme milestones.