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.
More from Defence Notes
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.