Ministry says US threatens global supply chain, after Washington adds 7 Chinese entities to export control list
Published: Aug 25, 2022 05:17 PM Updated: Aug 25, 2022 05:12 PM
China US Photo: VCG

China US Photo: VCG

A spokesperson from China's Ministry of Commerce (MOFCOM) urged the US to immediately stop its erroneous practice of putting Chinese entities on its export control list, saying the move poses "a serious threat" to the stability of global supply and industrial chains, which will seriously hurt normal economic and trade cooperation between Chinese and US companies.

The criticism came after the US added seven China-related entities, mostly related to aerospace, to its export control list, citing national security and foreign policy concerns, according to a notice published by the US Commerce Department on Tuesday.

The seven entities include China Academy of Space Technology 502 Research Institute, China Academy of Space Technology 513 Research Institute, and China Aerospace Science and Technology Corp 9th Academy 771 Research Institute. The inclusion of the entities indicates that US companies would need a license to supply products or services to those institutes.

Shu Jueting, the MOFCOM spokesperson, said on Thursday in Beijing that the US has repeatedly generalized the concept of national security, abused export controls and other measures, and used its national power to suppress and contain other companies. China firmly opposed such actions.

"The US' action has seriously damaged the normal economic and trade exchanges and cooperation between Chinese and US enterprises, and seriously hurt the market rules and the international economic and trade order, while posing a serious threat to the stability of global industrial and supply chains," Shu said. 

According to Shu, such actions are not beneficial to the US, China or the world. The US should immediately stop its wrong doings, otherwise China will take necessary measures to safeguard the legitimate rights and interests of Chinese entities.

Huang Zhicheng, an aerospace expert, told the Global Times that the US move might have something to do with the newly passed CHIPS and Science Act, as US is gradually expanding its attack on Chinese chipmaking. 

Some of the seven targeted entities are integrated circuit research companies. For example, the China Aerospace Science and Technology Corp 9th Academy 771 Research Institute is engaged in the research and development of computers and integrated circuit products that are used in sectors like aerospace, ships and electronics.

But Huang said the impact of the US move will be limited on China's aerospace industry, as China has always followed an independent development path. Even in the past, the US did not provide any technical support for China's aerospace development, but tried to thwart China's aerospace progress.

"Since we have adhered to the independent development route, we have made great progress in chip research and development and manufacturing in the aerospace field. Therefore, the impact of the sanctions on China's aerospace industry will not be major," Huang said.

Global Times