Trump hits Chinese-Companies with New-Trade-Restrictions

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Trump to Fight-Back China's-National Security-Law
Trump to Fight-Back China's-National Security-Law

Trump hits Chinese-Companies with New-Trade-Restrictions

The U.S. Department of Commerce on Friday afternoon surge the Trump administration’s trade dispute with China, subdivide exports to 2 dozen, especially for Chinese entities that act as acquirers for the country’s military.

Commerce Secretary Wilbur Ross said during a statement that the approaching move will “demonstrate our commitment to preventing the utilization of U.S. products and technologies in activities that erode our goals.”

The Department of Commerce declared it’s willingness to act against 24 business entities that are situated in China, Hong Kong or the Cayman Islands—a haven for tax avoidance—that represent a “significant risk” of supporting Chinese military supply chains.

Trump hits Chinese-Companies with New-Trade-Restrictions

The companies consists of several technology and research firms, such as CloudMinds, in Beijing, which runs cloud-enabled robotic systems, and Qihoo 360, also in Beijing, which evolve antivirus software.

The department will add the businesses to its Entity List, a neighborhood of the federal body of regulations outlining which foreign entities are prohibited from being sold American goods or technologies in the absence of providing a special license to the trader.

The policies identified key products that the Department of Commerce regulates under this licensing regime that would involve national security, policy or nonproliferation interests. They place a considerable specialize in so-called “dual use” items which can be sold for civilian use but could have military applications also.

Trump hits Chinese-Companies with New-Trade-Restrictions

This is the second move from the Department of Commerce within the past week to crack down on U.S. exports to China, further rattling a trade standoff between the 2 countries that had been subsumed by the coronavirus pandemic.

Last Friday, the department announced a replacement rule seeking to limit the power of HuaweiChina’s assets telecommunications company—to access critical inputs. The action was prompted by what Ross described as an evasion of earlier restrictions when the corporate was added to the Entity List in May 2019.

According to Ross, Huawei had tried to avoid the selection by in-sourcing more of its production process. The rule, which can become in September, moves to limit this by preventing foreign plants enabled by U.S. technology from manufacturing chips marked without a license by Huawei.

Trump hits Chinese-Companies with New-Trade-Restrictions

However, they felt that the license would be declined.

In response thereto announcement, the state-run Global Times cited a source on the brink of the Chinese government as threatening “countermeasures” against prominent U.S. corporations such as Apple and Boeing.

“China will inaugurate rounds of unending inspection on those companies, like a sword that is hanging over their head,” one “insider” said. “It will weaken investors’ esteem and affect their income within the Chinese market.”

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