5 July 2022

U.S. Blacklists Five Chinese Firms for Allegedly Helping Russia’s Military

Kate O’Keeffe

The U.S. Commerce Department added five Chinese companies to an export blacklist for allegedly helping Russia’s military despite U.S. and allied efforts to cut off Russia’s access to technology following its invasion of Ukraine.

Commerce officials said the companies had supplied items to Russian entities of concern before Russia’s Feb. 24 invasion and “continue to contract to supply” sanctioned Russian entities. They didn’t provide details on the technology involved.

The move, effective Tuesday, marks the first time U.S. officials have taken action against Chinese companies for allegedly supporting Russia in the war. It also comes as U.S. officials and others have continued to say that China has generally not sought to help Russia militarily.

U.S. national security adviser Jake Sullivan said Tuesday that the U.S. doesn’t want China to become militarily supportive of Russia through the provision of equipment.PHOTO: LEAH MILLIS/REUTERS

National security adviser Jake Sullivan told reporters Tuesday that the U.S.’s number-one priority with respect to China when it comes to the war in Ukraine is that China not become militarily supportive of Russia through the provision of equipment. “Number two is that they not engage in wholesale or systematic undermining or evasion of U.S. sanctions,” he said while traveling to the North Atlantic Treaty Organization summit in Madrid.

“Thus far, we have not seen China act in a way inconsistent with those two principles and certainly not at scale with respect to the economic relationship,” Mr. Sullivan said.

Martin Chorzempa, an analyst with the Peterson Institute for International Economics, said that “export controls against Russia are working—with the help of China.”

In a Monday post on the PIIE’s website, Mr. Chorzempa cited data that China’s exports to Russia since the invasion have fallen 38% compared with the second half of 2021, versus an 8% drop in China’s overall exports during the same period.

A representative from the Chinese Embassy in Washington, D.C., said in response to the Commerce Department’s action: “China’s position on the Ukrainian issue is consistent and clear. We have been playing a constructive role in promoting peace talks and have not provided military assistance to the conflicting parties.”

The five Chinese firms the U.S. added to an “entity list” that restricts their access to U.S. technology are: Connec Electronic Ltd., King Pai Technology Co., Sinno Electronics Co., Winninc Electronic and World Jetta (H.K.) Logistics Ltd.

Commerce officials also called out two Chinese parties that have been on the entity list since 2018 for helping Russian “entities of concern” and allegedly continuing to do so: China Electronics Technology Group Corporation 13th Research Institute (CETC 13) and a subordinate institution.

None of the Chinese entities could immediately be reached for comment.

Alan Estevez, the department’s undersecretary for industry and security, said in a statement that the new listings send “a powerful message to entities and individuals across the globe that if they seek to support Russia, the United States will cut them off as well.”

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