The Trump administration seems to take action on Chinese companies in the remaining term. Reuters revealed that the United States will soon announce that 89 Chinese companies have military contact and restrict these companies to buy a series of American products and technologies.
Reuters quoted the draft content today (23) that the affected companies include China Commercial Aircraft (COMAC), China Aviation Industry Group (AVIC), and 10 entities related to the group.
The report believes that once the relevant list is released, this may further exacerbate the tension of US -China trade relations and cause harm to American companies selling civil aviation parts in China.
This list is also included in a draft rules in the United States, and this draft will record that China and Russia, which are considered by the United States as the end of the military.Once these companies are listed as the military end users, US suppliers must obtain licenses in order to sell a large number of commercial products to these companies. However, once the draft rules record the above -mentioned companies, the possibility of the permit application will be rejected.
Insiders in the industry revealed that at least one major American supplier may be surprised by the list of Chinese commercial aircraft, and this supplier has found that Chinese commercial aircraft are not military end users.
Industry insiders also said that this list will also provide European competitors with an opportunity to enhance their manufacturer's popularity because these competitors do not need to obtain permits.
General Electric and Honeywell International (Honeywell International) are Chinese commercial aircraft suppliers and have joint ventures with China Aviation Industry Group.
U.S. President Trump just announced on the 12th of this month that US funds are prohibited from investing in Chinese companies that support the Chinese military, and related administrative orders will take effect on January 11 next year.
