WASHINGTON: The US administration is adding 33 more Chinese firms into its list of red flag, which will face restrictions on their ability to receive shipments from the American exporters.
The Biden administration that that the US companies doing business with red-flag Chinese firms would have to go through the process of extra diligence because the United States is unable to verify 33 Chinese companies.
The addition of the 33 more Chinese companies brings the total number of listed entities to 175.
The US Commerce Department said it is adding the companies to what is known as the Unverified List, and the companies are subjected to a tough export control because the US officials have been unable to do customary checks.
Matthew Axelrod, the department’s assistant secretary for export enforcement said the ability to verify the legitimacy and reliability of foreign parties receiving US exports through the timely completion of end-use checks is a core principle of our export control system.
He said the inclusion of 33 firms in the Unverified List will assist US exporters in conducting due diligence and assessing transaction risk, and signal to the PRC government the importance of their cooperation in scheduling end-use checks.
The announcement comes as Beijing occupies the world’s attention by hosting the Winter Games. And it follows a speech last week from FBI Director Christopher Wray in which he said the bureau was opening investigations related to Chinese intelligence operations about every 12 hours and warned that there was no country that presents a broader threat to our ideas, innovation and economic security than China.
Meanwhile, China has frequently turned down the US accusations, saying Washington has made groundless attacks and malicious smears on Chinese companies.
China further said the US Commerce Department’s decision puts US exporters on notice that they will now need a license if they want to ship products to any of the companies on the list.
