The U.S. Department of Commerce plans to designate 89 Chinese companies as “military end users,” which would require U.S. companies to obtain a license to sell dual-use technologies to those named, Reuters reported today.
The restrictions appear to be aimed chiefly at China’s aerospace industry, including Commercial Aircraft Corporation of China (COMAC) and Aviation Industry Corporation of China (AVIC) and ten of its affiliates.
The reporting does not indicate whether the companies will be placed on the U.S. Entity List, or if the Department of Commerce will only require a license to engage in trade, as it did with SMIC earlier this year. The article does indicate that licenses will be considered under a presumption of denial.
The move is the latest in a push by the Trump administration to finalize the President’s hardline trade policies with China. Last week the White House created and filled a new position at the Department of Commerce to lead those efforts, further signaling its intent to galvanize export controls on China. “Unless Beijing reverses course and becomes a responsible player on the global stage, future U.S. presidents will find it politically suicidal to reverse President Trump’s historic actions,” a National Security Council spokesperson told Axios last week.