The U.S. Department of Commerce announced that it has added 42 Chinese entities to the export control list due to allegations of supplying U.S.-origin integrated circuits to Russia’s military and defense industry. In total, 49 entities were added to the list, with 42 based in China and the remainder in Estonia, Finland, Germany, India, Turkey, the United Arab Emirates, and the United Kingdom. The companies accused of providing microelectronics to Russia were said to be used for precision guidance systems in missiles and drones targeting civilian areas in Ukraine.
Alan Estevez, Under Secretary of Commerce for Industry and Security, emphasized that the United States will take action against parties facilitating the sale of U.S.-origin items to Russia’s military in its war against Ukraine. Thea Rozman Kendler, Assistant Secretary of Commerce for Export Administration, stated that the blacklisted entities accounted for a significant portion of the U.S.-origin integrated circuits shipped to Russia between March and July. Companies added to the entity list require a special license, which is difficult to obtain, to ship goods to entities on the list. Assistant Secretary for Export Enforcement Matthew Axelrod reinforced the message that supplying Russian defense programs with U.S.-origin technology will not be tolerated.
The entity list has been used by the United States to target China’s tech sector and hinder Russia’s actions in Ukraine. Last month, 11 Chinese and five Russian companies were added to the list for supplying components to build drones for the Russian army.
According to an unclassified report compiled by the Office of the Director of National Intelligence (ODNI) in July, China is likely providing military and dual-use technology to Russia for use in Ukraine. The report highlights that China is supplying dual-use technology used by Moscow’s military to continue the conflict in Ukraine, in violation of international sanctions and export controls. The Chinese regime has denied sending military equipment to Russia, but customs records reveal shipments from Chinese state-owned defense companies to sanctioned Russian Government-owned defense companies, including navigation equipment, jamming technology, and fighter jet parts.
Secretary of State Antony Blinken stated that there was no evidence of the Chinese regime transferring weapons or providing lethal aid to Russia but expressed concerns about Chinese firms supplying technology that could be used against Ukraine. Pentagon press secretary Brig. Gen. Patrick Ryder noted that while there was no evidence of China directly sending weapons to Russia, the possibility had not been ruled out.