Biden administration blacklists China firms for Moscow, Tehran drone links

The Biden administration slapped fresh trade curbs on 11 Chinese and five Russian companies Monday, targeting foreign actors seen as compromising national security and drawing Beijing’s ire.

The U.S. accused Hong Kong-based exporter Asia Pacific Links, three Finnish freight, warehousing, and logistics companies, three Russian entities and a German industrial equipment producer of being embroiled in a scheme to flout U.S. export curbs by supplying drone components to the previously blacklisted Special Technology Center in St. Petersburg, Russia.

These companies were among 28 additions to the U.S. Entity List on Monday. The U.S. Commerce Department’s Bureau of Industry and Security accused eight Chinese additions of procuring or attempting to procure U.S. drone equipment for Iran, while two Omani entities were cited for supporting the Houthi fighters in Yemen.

The list is a tool Washington uses to levy trade restrictions on entities it deems as threatening U.S. national security and has recently been used to curb Chinese technology and penalize involvement in Russia’s war machinery.

“Our actions send a clear message to those trying to evade our export controls that there will be consequences for behavior that seeks to undermine U.S. national security interests,” Under Secretary of Commerce for Industry and Security Alan Estevez in a statement.

“We will not hesitate to take swift and meaningful action against those who continue seeking to supply and support Putin’s illegal and immoral war in Ukraine,” he added.

None of the Chinese entities cited were able to immediately respond to CNBC’s requests for comment. CNBC was unable to reach the spokesperson of one company for comment, while some of the companies did not have public contact details.

“The United States abuses unilateral sanctions and ‘long-arm jurisdiction’ in undermining international trade order and rules, hindering normal international economic and trade exchanges, and harming the legitimate rights and interests of Chinese companies and individuals,” the Chinese Commerce Ministry said in a statement Tuesday.

“The United States should immediately stop its unreasonable suppression of Chinese companies and individuals. China will take necessary measures to resolutely safeguard its legitimate rights and interests,” the Chinese Commerce Ministry added.

— CNBC’s Quek Jie Ann contributed to this story.