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27.08.2020 10:12 AM
US blocks two dozen Chinese companies from the US market

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On Wednesday, the Trump administration blocked two dozen Chinese companies from the US market, saying that they were involved in China's controversial military operation in the disputed South China Sea.

It was a follow-up to the previous actions of the United States, where the administration fined dozens of Chinese companies, implicating them to the issue on national security and alleged human rights violations of Muslim minorities in the Xinjiang region.

Now, this is the first time that the administration used a list of legal entities in connection with China's invasion of the South China Sea. Companies placed on the list will no longer have access to technology and other products sourced from the United States.

"Be it toothbrushes or semiconductors, requests will be denied without obtaining special permission," said the US Department of Commerce.

Visa restrictions will also begin to be imposed on Chinese citizens "responsible for large-scale reclamation, construction or militarization of disputed outposts in the South China Sea or those involved in them."

In recent weeks, the Trump administration has banned the use of China-owned social media apps TikTok and WeChat from the United States, closed the Chinese diplomatic mission in Houston, and imposed sanctions on Chinese officials and organizations for human rights abuses. In July, Secretary of State Mike Pompeo announced that China's claims over much of the South China Sea were "completely illegal," opening the way for the United States to impose sanctions on Chinese companies operating in the region.

The South China Sea has become a potential location for military confrontation, causing alarm between ships and aircraft. On Tuesday, China accused the US of flying a U-2 reconnaissance aircraft over a military live-fire exercise conducted by China, calling it a "blatant provocation."

Meanwhile, State Department officials declined to comment on news reports of two missiles fired by the Chinese military into the South China Sea.

Andrey Shevchenko,
Analytical expert of InstaForex
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