New US restriction on 33 Chinese firms and institutions to take effect on June 5

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New US restriction on 33 Chinese firms and institutions to take effect on June 5

In the latest leg of Sino-US rift which has been widening since China imposed a National Security Law to prevent the pro-democracy protests in Hong Kong, the US Commerce Department said late on Wednesday that the new US restrictions on 33 Chinese firms and institutions that it had announced last month, would come in to effect from Friday, the 5th of June.

Besides, the US Commerce Department had added these Chinese institutions and companies in to an economic blacklist adding that the enlisted Chinese entities were spying on the minority Chinese Muslim Uighur community in Xinjiang and have been related to Chinese militaries as well as weapons of mass destruction, a US move which would prevent US companies from selling goods to the blacklisted Chinese companies, however, the companies could apply for licenses, but they must be prepared for an inevitable denial, suggested analysts.

Nonetheless, as a consequential repercussion, the Chinese Foreign Ministry said last month that it was firmly opposing the US sanction adding that the matters were completely internal affairs of China.

Sino-US rift widens as US blacklisting to take effect on June 5

On top of that, in an earlier announcement made last month, the US Commerce Department was quoted saying that seven Chinese companies alongside two institutions were blacklisted over accusation of alleged spying on Uighur Community, while rest of the blacklisted companies, government institutions and commercial organizations had been prevented from conducting businesses with US companies due to their tie-ups with the Chinese militaries.

In tandem, the new blacklisting attempt from Washington largely coincided an October 2019 action when the Commerce Department had added 28 Chinese public security companies and bureaus including the video surveillance company Hikvision into a US trade blacklist citing national security concerns.

Aside from that, Chinese Commerce Department had also made an announcement shortly after the US move to blacklist 33 Chinese companies and institutions saying that it was drafting a list of “unreliable US entities” including the iPhone maker Apple Inc. and the US chipmaker Nvidia Corp. alongside Qualcomm, business activities of which would be restricted in China.