According to a report from Reuters, the Trump administration is preparing to declare that 89 Chinese firms have ties to China’s military, which would restrict them from buying a range of US goods and lay the groundwork for further sanctions.
Reuters obtained a draft version of the list, which includes 28 Russian companies. On the list is the Commercial Aircraft Corp of China Ltd, a firm spearheading the Chinese effort to compete with Boeing and Airbus. Another Chinese aviation company and ten of its entities are also on the list.
The US will consider the Chinese and Russian firms to be “military end users,” a designation that means US companies must obtain licenses to export supplies to the firms. Applications for those licenses are more likely denied than accepted.
In April, the US Commerce Department expanded the definition of “military end users” to include companies that support the production of items used by the military. Previously, the designation was reserved for militaries and national police.
The designations are seen as part of the Trump administration’s efforts to increase pressure on China before Joe Biden is inaugurated on January 20th. Earlier this month, President Trump signed an executive order banning US investment in 31 companies the US claims are linked to China’s military.