USA sanctions 20 Chinese & Hong Kong companies for allegedly providing 'critical inputs' to Russian defence industry
"U.S. sanctions China, Hong Kong entities for Russia links: What we know" 2 May 2024
The latest U.S. government sanctions issued Thursday, Asia time, included about 20 companies from China and Hong Kong that have allegedly assisted Russia's ongoing invasion of Ukraine...The Treasury Department emphasized in a statement that it was "particularly concerned" about entities based in China and other countries that provide "critical inputs to Russia's military-industrial base."...
Which Chinese and Hong Kong companies are sanctioned? Most are relatively small companies, and none are publicly traded. As a result, information about them is sparse... A number of the entities are officially acknowledged to be "high-tech companies" by local authorities in China, which gives them a preferred tax rate of 15%...
Despite specific warnings from Yellen, no banks were listed...However, banks will need to upgrade their screenings to avoid business dealings with affected companies or they may risk being sanctioned themselves...Another lawyer specializing in ship financing said it was particularly complicated for Chinese banks to weigh relationships with the companies sanctioned by the U.S...
CFU Shipping, a Hong Kong-based surface transport company that was sanctioned, depends on Chinese banks to finance its shipping operations...The company was placed on the sanction list for allegedly delivering the final liquefied natural gas module for the Arctic LNG 2 project in Russian Siberia...Chinese state oil majors CNOOC and China National Petroleum Corp. (CNPC) each own a 10% stake [in the project]...
Other sanctioned companies mentioned include:
- Chongqing Zongshen Aero Engine Manufacturing
- Yantai IRay Technology
- Chengdu Keylink Wireless Technology
- Wuhan Tongsheng Technology
- Hengshui Heshuo Cellulose
- Hengshui Yuanchem Trading
- Pixel Devices
- Tulun International Holding