Economy
US Economic Retaliation Against China and Russia: US Adds 37 Chinese And Russian Entities To Trade Blacklist
The east and west are pounding against each other in this global geopolitical upheaval, harming each other's economic interests around the world and in the region.
During this time period of European conflict and supply chain crisis, the world is gradually returning to the cold war era, moving away from multilateralism and towards the triangular rule. The United States and its allies lead one side of the triangle, while China and Russia occupy the other two sides of the triangle.
As the world's sole superpower, the United States is using its economic might to counter Chinese and Russian aggression on third-party countries, while also attempting to control the flow of unwanted nuclear technology into the hands of other dangerous nations such as Pakistan, a nation that is highly radicalized and uses nuclear excuses to blackmail the world for the dollar and other currencies.
China is also beefing up its nuclear arsenal to counter the US in the Indo-Pacific.
Therefore, the move to ban 37 Chinese and Russian companies under US laws became necessary to check on unwanted nuclear technology export, human rights violations, and the chip-making capability of Chinese farms.
The Commerce Department placed the groups on its "entity list," effectively barring US companies from supplying them with American-made technology. Some of the companies were blacklisted for providing technology to an Iranian entity that had previously been sanctioned by the US.
The most prominent organizations on this trade ban list are BGI Research and BGI Solution, part of the Chinese state control BRI group, and Loongsong technology, also controlled by the Chinese state-supported Chinese Academy of Science.
BGI is the largest genomic research company in China, and this organization is vulnerable to the country's national security because China could use this group to obtain genetic data of American citizens.
Loongsong is one of China's largest chip manufacturers, and the US government has been attempting to limit China's chip manufacturing capability since President Donald Trump's administration, and President Joe Baiden is no exception.
The move is the latest effort by the Joe Biden administration to punish these Chinese groups that allegedly violated export control rules by providing or attempting to provide technology that would aid the People's Liberation Army's rapid military modernization.
China is a serial violator of intellectual property rights; it does not encourage its universities or other research groups to discover something new; instead, it re-engineers goods that are already on the market and then sells the same goods in new forms. Therefore, it has become necessary for other nations to rebalance China's capability by imposing trade sanctions and China's mimicking capacity.
The US Commerce Department also targeted another tech giant, Suzhou Centec Communications, for allegedly acquiring US technology for the People's Liberation Army in order to advance and strengthen the army. Centec is a 5G tech giant in China, a market that was previously dominated by another Chinese tech firm Huawei, but Huawei's capability has been clipped by other countries, including the United States, by imposing a ban on the company and its technologies.
The US Commerce Department also blacklisted 4Paradigm Technology, which specializes in artificial intelligence. Another tech behemoth, Inspur Group, which specializes in AI, cloud computing, and big data, has been placed on an entity list for its support of the PLA's modernization drive.
Over the last two weeks, the US government has repeatedly warned China not to provide any lethal technology to the Russian military. The United States has become extremely wary of the volatile political situation that is harming the interests of every nation on the planet.
As a result, The US government and commerce department are blacklisting organizations around the world that are sending technologies to the Russian military or government.
On Thursday, the US blacklisted DMT Trading of Belarus and Neotec Semiconductor of Taiwan for assisting Russia in strengthening its defense industry. There are also six companies, including Galaxy Electronics and Arttronix International, that were also added to the list for supplying or attempting to supply technology to Pasna, an Iranian group that is on a separate Treasury Department list of companies sanctioned.
The US government is also vigilant about Iran because Iran has provided the Russian military with loitering, kamikaze drones, and other defense equipment.
In response to this ban, China has strongly opposed the ban, and Russia has slammed the US for its alleged unilateral superior mentality.
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