China Calls US Sanctions On Chinese Firms 'Illegal' Move, Endangers Global Supply Chains

This after the US Commerce Department on Wednesday sanctioned five firms based in mainland China and Hong Kong over alleged attempts to evade US export controls on Russia.

The US has barred the companies from trading with any US firms without gaining a nearly unobtainable special license.

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The Chinese government on Saturday called the latest US sanctions against additional Chinese companies' illegal move that endangers global supply chains reported the Associated Press. This after the US Commerce Department on Wednesday sanctioned five firms based in mainland China and Hong Kong over alleged attempts to evade US export controls on Russia.

The US has barred the companies from trading with any US firms without gaining a nearly unobtainable special license.

A statement from China’s Commerce Ministry said the US action “has no basis in international law and is not authorized by the United Nations Security Council.”

“It is a typical unilateral sanction and a form of ‘long-arm jurisdiction’ which seriously damages the legitimate rights and interests of enterprises and affects the security and stability of the global supply chain. China firmly opposes this,” the statement said.

“The U.S. should immediately correct its wrongdoing and stop its unreasonable suppression of Chinese companies. China will resolutely safeguard the legitimate rights and interests of Chinese companies,” it added.

The latest sanctions were against Allparts Trading Co., Ltd.; Avtex Semiconductor Limited; ETC Electronics Ltd.; Maxtronic International Co., Ltd.; and STK Electronics Co., Ltd., registered in Hong Kong.

Sanctions against foreign companies that the US believes are aiding Russia in its conflict with Ukraine are being more strictly enforced, forcing them to choose between doing business with Moscow or Washington. The list now includes a total of 28 firms from countries like Malta, Singapore, and Turkey.

The US suspects these companies “have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States,” the US Commerce Department said in its statement.  

Entities named were designated as “military end users” for “attempting to evade export controls and acquiring or attempting to acquire U.S.-origin items in support of Russia’s military and/or defense industrial base,” it said.

According to the report, after the United States declared sanctions against the Chinese company Changsha Tianyi Space Science and Technology Research Institute Co. Ltd., also known as Spacety China, a similar protest was registered by China in February.

The US had alleged that these companies provided satellite imagery of Ukraine to Wagner Group, a private army affiliate of Russia. The US was then accused by China's Foreign Ministry of "outright bullying and double standards" for punishing its businesses while stepping up attempts to arm Ukraine with defense equipment.

While supporting Russia politically, rhetorically, and economically at a time when Western nations have imposed harsh sanctions and sought to isolate Moscow for the invasion of its neighbor, China has claimed that it is neutral in the crisis, the report said. Just weeks before last year's invasion, China refused to condemn Russia's conduct and denounced Western economic penalties against Moscow. 

Last month, Chinese President Xi Jinping traveled to Moscow. On Friday, China announced that Defence Minister Gen. Li Shangfu would travel to Russia the next week to meet with his counterpart Sergei Shoigu and other military leaders, the AP report noted.