US imposes more sanctions on Chinese firms

The US government has imposed sanctions on subsidiaries operated by three of China's biggest defence-technology firms.

The State Department said on 21 January that the sanctions, which run for two years, are a response to the subsidiaries' “missile technology proliferation activities”.

The restrictions are imposed on the China Aerospace Science and Technology Corporation's (CASC's) First Academy and its sub-units; China Aerospace Science and Industry Corporation's (CASIC's) Fourth Academy and its sub-units; and Poly Technologies Incorporated (PTI) and its sub-units.

The sanctions consist of denials of licences to transfer US dual-use technologies to the entities; denial of all US government contracts to the entities; and a ban on US imports of products or technologies sourced from the subsidiaries.

In response, Chinese Ministry of Foreign Affairs spokesperson Zhao Lijian said at a news conference on 21 January that the sanctions were unfair.

“Out of political purposes, the US uses all sorts of pretexts to sanction and suppress Chinese enterprises,” he said. “This is typical bullying practice. China deplores and rejects it.”

He added that the Chinese government “exercises strict control on export of missiles and related items as well as technologies in accordance with domestic policies, laws, and regulations on non-proliferation.”