🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

US adds six companies to trade restriction list, four for training China's military

Published 07/02/2024, 09:23 AM
Updated 07/02/2024, 03:02 PM
© Reuters.

By Karen Freifeld

WASHINGTON (Reuters) - The United States added six companies to its trade restriction list on Tuesday, including four for their links to the training of China's military forces, according to a government posting.

Two of the companies are in China, one in South Africa, two in the United Arab Emirates and one in Britain.

Global Training Solutions Limited and Smartech Future Limited, both in China, as well as Grace Air (Pty) Ltd and Livingston Aerospace Limited of the United Kingdom, were added over their ties to the Test Flying Academy of South Africa and the training of China’s military forces using Western and NATO sources, the posting said.

The Test Flying Academy of South Africa was put on the Entity List, as it is known, last year for training Chinese military pilots using Western and North Atlantic Treaty Organization sources.

UAE companies Mega Fast Cargo and Mega Technique General Trading were added for evasive conduct, and Mega Fast Cargo for shipping U.S.-origin goods to Russia, the posting said.

Companies on the Entity List, which is overseen by the U.S. Commerce Department, require licenses to ship U.S. goods and technology to them, which are likely to be denied.

"Preventing American know-how from training PRC military pilots and U.S. technology from aiding Russia enhances U.S. national security," Commerce official Matthew Axelrod said in a statement. PRC refers to the People's Republic of China.

The companies could not immediately be reached for comment.

The Commerce Department also added 13 companies to its Unverified List, including eight from China, because U.S. export control officers could not complete on-site visits to determine whether they could be trusted to receive U.S. origin technology and other goods.

U.S. exporters are required to conduct additional due diligence before sending items to companies on the Unverified List, and may have to apply for more licenses.

© Reuters. FILE PHOTO: National flags of the U.S. and China are seen in front of an international hotel in Beijing January 17, 2011. REUTERS/Jason Lee/File Photo

At the same time, the department removed eight companies from the Unverified List, including six from China, one from the United Arab Emirates and one from Russia.

Both the Entity List and Unverified List are tools the U.S. is using to stop sensitive American goods and technology from falling into the wrong hands.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.