US, EU countries blacklist Chinese companies as “military end users”


The US government places several Chinese, Pakistani and Russian companies and entities on a commercial blacklist and are included in the list of “military end-users” (MEU) entities. The US Department of Commerce announced on November 24 that eight Chinese technology entities have been included in the list of entities to support the military modernization of the People’s Liberation Army (PLA) and acquire or attempt to acquire items from the United States to support military applications.

This is part of the U.S. government’s efforts to prevent emerging U.S. technologies from being used in China’s quantum computing support for military applications, including anti-stealth and anti-submarine applications, as well as to decipher the encryption or develop unbreakable encryption capabilities. This action will also restrict the export of products to Chinese electronics manufacturers who support the Chinese People’s Liberation Army military modernization efforts.

The eight companies are: Hangzhou Zhongke Microelectronics Co Ltd, Hunan Goke Microelectronics Co. Ltd, New H3C Semiconductor Technologies Co Ltd, Xi’an Aerospace Huaxun Technology, Yunchip Microelectronics, Hefei National Laboratory for Physical Sciences at Microscale, Quantum CTek and Shanghai Quantum CTeck Co Ltd.

The Biden administration said 16 entities and individuals operating in China and Pakistan were on the entity list for their contributions to Pakistan’s unsafe nuclear activities or ballistic missile programs. In addition, the three subsidiaries of Corad Technology Limited, which were on the entity list in 2019, are also included in the list because they have been involved in military and space projects from the United States and other Western countries to the Iran and North Korea. Nominal companies, as well as entities affiliated with the Chinese government and the defense industry, sell the technology.

The Bureau of Industry and Security of the Ministry of Commerce, which is responsible for export control policies, also added the Moscow Institute of Physics and Technology to the list of “military end users” because the he institute manufactures military products for military end users.

“The action will help prevent the diversion of US technology into the military development of the People’s Republic of China and Russia and activities that raise non-proliferation concerns, such as Pakistan’s dangerous nuclear activities or the ballistic missile programs, ”said US Secretary of Commerce Lei. Mundo said in a statement.

Since the Trump administration, entity lists and military end-user lists have increasingly been used for national security and foreign policy purposes. Many well-known Chinese companies, including telecommunications giant Huawei, are on the US Department of Commerce’s Entity List or the Defense Ministry’s Communist Party of China Military Companies.

China’s beachhead for the European Union Italy has vetoed a Chinese company

Just before the coronavirus outbreak, Italy was called Beijing’s beachhead for the European Union, but the Italian government on November 23 blocked the acquisition of a Chinese company in Italy. It is a high-tech enterprise with the advanced technology in semiconductor material equipment and LED substrate material manufacturing in mainland China. Italy’s Industry Minister Giancarlo Giorgetti said he believed the acquisition could impact the strategic semiconductor industry.

This is the third time the Italian government has vetoed Chinese mergers and acquisitions since last year. In October, he vetoed the sale of an Italian vegetable seed producer to Chinese group Syngenta, and in April blocked Shenzhen INVISTA from acquiring a majority stake in an Italian semiconductor equipment company.

Citing the “golden power” rule according to which Italy protects “assets of strategic importance to national interests”, he refused the Chinese company of the Italian drone maker to take over. It has been revised several times since its proposal in March 2012. Italy has used the bill on five occasions to prevent foreign entities from acquiring Italian companies, four of which involved Chinese companies; three times were rejected after the entry into office of Italian Prime Minister Mario Draghi.

Italy was the most pro-Chinese country in the European Union and the two countries are comprehensive strategic partners. A spokesperson for the Chinese Foreign Ministry said that China hopes the Italian side will continue to adhere to the principle of free trade and provide a fair, equitable and non-discriminatory business environment for Chinese companies.

A few days ago, the government of Greenland, another European country, announced on November 23 that it had revoked the license of a Chinese mining company to extract iron ore locally, which would have undermined attempts from China to enter this resource-rich arctic island. Greenland is an autonomous region under the Kingdom of Denmark.

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