BEIJING: China said on Monday it opposes a potential move by the United States to declare that 89 Chinese aerospace and other companies have military ties, restricting them from buying a range of U.S. goods and technology.
Foreign Ministry spokesman Zhao Lijian, responding to a question based on a draft copy of the list, said the United States should stop stretching the concept of national security and oppressing foreign companies.
What the United States is doing severely violates the principle of market competition and international norms for trade and investment that the U.S. claims to uphold, he added.
Chinese companies have always operated in accordance with the law and strictly follow local laws and regulations when operating overseas, including in the United States, Zhao said.
Commercial Aircraft Corp of China Ltd (COMAC), which is spearheading Chinese efforts to compete with Boeing and Airbus, is on the list, as is Aviation Industry Corporation of China (AVIC) and 10 of its related entities. The list is included in a draft rule that identifies Chinese and Russian companies the U.S. considers “military end users,” a designation that means U.S. suppliers must seek licenses to sell a broad swath of commercially available items to them.
According to the rule, applications for such licenses are more likely to be denied than granted.
The Trump administration is close to declaring that 89 Chinese aerospace and other companies have military ties, restricting them from buying a range of U.S. goods and technology, according to a draft copy of the list. The list, if published, could further escalate trade tensions with Beijing and hurt U.S. companies that sell civil aviation parts and components to China, among other industries.
U.S President Donald Trump has stepped up his actions in recent months against China. Ten days ago, he unveiled an executive order prohibiting U.S. investments in Chinese companies that Washington says are owned or controlled by the Chinese military. – Agencies
