U.S. Department of Commerce adds Chinese Motor Sich investor Skyrizon to Military End-User list
The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has added the Chinese company Skyrizon, which has invested in the shares of the Ukrainian manufacturer of aircraft engine Motor Sich, to the Military End-User (MEU) List, which was introduced in late 2020 and included 58 Chinese and 45 Russian companies.
"Skyrizon—a Chinese state-owned company—and its push to acquire and indigenize foreign military technologies pose a significant threat to U.S. national security and foreign policy interests," Commerce Secretary Wilbur Ross quoted a press release said.
According to him, this action serves to warn the export community of Skyrizon's significant ties to the People's Liberation Army of China.
In turn, Skyrizon declared the unreasonableness of such restrictions on the part of the United States and initiated mechanisms for assessing risks and response steps, and will carefully study the possible consequences of being included in the MEU list.
Previously, the Department of Commerce said that the Entity List is a tool utilized by BIS to restrict the export, re-export, and transfer (in-country) of items subject to the Export Administration Regulations (EAR) to persons (individuals, organizations, companies) reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the United States. Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited.
The U.S. government has determined that these entities represent an unacceptable risk of use in or diversion to a 'military end use' or 'military end user' in China, Russia, or Venezuela.
Skyrizon is the first company added to the MEU since it was introduced in late 2020.