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United States sanctions against China

From Wikipedia, the free encyclopedia

The United States government applies economic sanctions against certain institutions and key members of the Chinese government and its ruling Chinese Communist Party (CCP), certain companies linked to the People's Liberation Army (PLA), and other affiliates that the U.S. government has accused of aiding in human rights abuses. The U.S. maintained embargoes against China from the inception of the People's Republic of China in 1949 until 1972. An embargo was reimposed by the U.S. following the 1989 Tiananmen Square protests and massacre. From 2020 onward, the U.S. imposed sanctions and visa restrictions against several Chinese government officials and companies, in response to the persecution of Uyghurs in China, human rights abuses in Hong Kong and Tibet, military-civil fusion, support for the Russian invasion of Ukraine, and fentanyl production.

Economic sanctions and export controls against China are administered and enforced by the US Department of the Treasury's Office of Foreign Assets Control (OFAC) and the US Department of Commerce's Bureau of Industry and Security (BIS), respectively.

History

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Due to concerns about national security and human rights, the United States has gradually increased sanctions against Chinese businesses and organizations. According to the United States Department of Commerce, 721 Chinese businesses, organizations, and individuals have been added to an "entity list" that restricts their ability to purchase goods from the United States.[1]

Sanctions in the early PRC (1949–1979)

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After the establishment of Communist rule in China in 1949, an embargo against the sale of military technology or infrastructure, previously levied against the Soviet Union, was expanded to include the newly established People's Republic of China.[2] Following the onset of the Korean War, further trade restrictions were imposed.[3] According to academic Chun Lin, the embargo resulted in increased Chinese nationalism.[4]

The trade embargo was lifted under President Richard Nixon in 1972 right before the opening of China and establishment of official relations.[5]

Sanctions after the 1989 Tiananmen Square protests and massacre

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Further information: Reactions to the 1989 Tiananmen Square protests and massacre

Following the Tiananmen Square massacre, the Bush Sr. administration imposed an arms embargo against the PRC after the massacre of the protesters.[6]

[edit]

The United States has sanctioned and prosecuted Chinese companies and individuals for providing material assistance to Iran's missile program. In 2014, the U.S. Treasury Department sanctioned Sinotech Dalian Carbon and Graphite Manufacturing Corporation for helping Iran buy parts to produce ballistic missiles.[7] In June 2023, the U.S. Treasury Department sanctioned Zhejiang Qingji and other entities in China and Hong Kong for selling centrifuge equipment to Iran.[8][9] In September 2023, six Chinese entities were sanctioned for allegedly assisting the Iran Aircraft Manufacturing Industries Corporation make drones to attack oil tankers and for export to Russia's military.[10]

Sanctions under the Trump administration

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Ban of Huawei and ZTE equipment

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See also: Entity List

In August 2018, President Trump signed the National Defense Authorization Act for Fiscal Year 2019 (NDAA 2019) which banned Huawei and ZTE equipment from being used by the U.S. federal government, citing security concerns.[11][12][13]

In addition, on 15 May 2019, the Department of Commerce added Huawei and 70 foreign subsidiaries and "affiliates" to its Entity List under the Export Administration Regulations, citing the company having been indicted for "knowingly and willfully causing the export, re-export, sale and supply, directly and indirectly, of goods, technology and services (banking and other financial services) from the United States to Iran and the government of Iran without obtaining a license from the Department of Treasury's Office of Foreign Assets Control (OFAC)".[14] This restricts U.S. companies from doing business with Huawei without a government license.[15][16][17][18] Various U.S.-based companies immediately froze their business with Huawei to comply with the regulation.[19] That same year, it was determined that Huawei also provided equipment to build North Korea’s 3G network.[20]

Currency manipulator designation

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In August 2019, the United States Department of the Treasury designated China a currency manipulator,[21][22][23] which resulted in China being excluded from U.S. government procurement contracts.[21] The designation was withdrawn in January 2020 after China agreed to refrain from devaluing its currency to make its own goods cheaper for foreign buyers.[24]

Sanctions under Uyghur Human Rights Policy Act

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Main article: Uyghur Human Rights Policy Act

On July 9, 2020, the Trump administration imposed sanctions and visa restrictions against senior Chinese officials, including CCP Politburo member Chen Quanguo, Zhu Hailun, Wang Mingshan (王明山) and Huo Liujun (霍留军). With sanctions, they and their immediate relatives are barred from entering the U.S. and will have US-based assets frozen.[25] In response, the Chinese government announced sanctions against U.S. Senators Ted Cruz, Marco Rubio, and other American officials.[26]

Sanctions under Hong Kong Autonomy Act

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Main articles: Hong Kong Autonomy Act and Executive Order 13936

In August 2020, Chief Executive Carrie Lam and ten other Hong Kong government officials were sanctioned by the United States Department of the Treasury under an executive order by President Trump for undermining Hong Kong's autonomy.[27][28][29] The sanction is based on the Hong Kong Autonomy Act and Lam would be listed in the Specially Designated Nationals and Blocked Persons List.

On December 7, 2020, pursuant to the order, the U.S. Department of the Treasury imposed sanctions on 14 Vice Chairpersons of the National People's Congress of China, for "undermining Hong Kong's autonomy and restricting the freedom of expression or assembly".[30]

Prohibition of investment in companies linked to China’s military

[edit]
Further information: Military-civil fusion

On November 12, 2020, President Donald Trump signed Executive Order 13959, titled "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies". The executive order prohibits all U.S. investors (institutional and retail investors alike) from purchasing or investing in securities of companies identified by the U.S. Department of Defense as "Communist Chinese military companies."[31][32] As of January 14, 2021, 44 Chinese companies were identified. Five of these companies are to be delisted by the New York Stock Exchange by March 2021.[33] On January 13, 2021, the executive order was amended to require divestment from the companies by November 11, 2021.[34]

Section 1260H of the National Defense Authorization Act for Fiscal Year 2021 requires the U.S. Department of Defense to release the names of all "Chinese military companies" operating directly or indirect in the United States.[35][36]

Sanctions under the Biden administration

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Russian invasion of Ukraine

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Further information: China and the Russian invasion of Ukraine and International sanctions during the Russian invasion of Ukraine

In April 2022, United States Secretary of Treasury Janet Yellen warned China that it could face consequences for not sanctioning Russia.[37] In June 2022, the United States Department of Commerce placed five Hong Kong companies on the Bureau of Industry and Security's Entity List for providing support to Russia's military.[38][39] The U.S. Treasury Department separately sanctioned a Chinese and an Armenian vendor for maintaining trade relationship with a Russian arms procurement firm.[40][41] In September 2022, the Office of Foreign Assets Control sanctioned Sinno Electronics of Shenzhen for supplying a Russian military procurement network.[40][42]

In January 2023, the U.S. Treasury Department sanctioned Spacety China, also known as Changsha Tianyi Space Science and Technology Research Institute Co. Ltd., for providing satellite imagery to the Wagner Group.[43] In February 2023, the U.S. Commerce Department added AOOK Technology Ltd, Beijing Ti-Tech Science and Technology Development Co, Beijing Yunze Technology Co, and China HEAD Aerospace Technology Co to the Entity List for aiding Russia's military.[44][45][46]

In March 2023, the U.S. Treasury Department sanctioned five Chinese companies for supplying equipment to the Iran Aircraft Manufacturing Industries Corporation, which manufactures HESA Shahed 136 drones used by Russia against Ukraine.[47][48]

In July 2023, the US Office of the Director of National Intelligence published a report stating that the Chinese government is assisting Russia to evade sanctions and providing it with dual-use technology.[49][50]

In October 2023, the U.S. Department of Commerce added 42 Chinese companies to the Entity List for supplying Russia with microelectronics for missile and drone guidance systems.[51] In April 2024, the Department of Commerce sanctioned a Chinese company for supporting Russia's military through the procurement, development, and proliferation of Russian drones.[52] In May 2024, the U.S. sanctioned 20 companies in China and Hong Kong for supplying Russia's military.[53] In October 2024, the U.S. sanctioned two companies, Xiamen Limbach Aircraft Engine Co. and Redlepus Vector Industry, involving the production of long-range attack drones for Russia, including the Garpiya.[54]

Sanctions on Chinese semiconductor industry

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On October 7, 2022, the Bureau of Industry and Security of the United States Department of Commerce implemented controls related to advanced computing and semiconductor manufacturing in China. Some of these controls began immediately whereas others became effective on October 12, 2022, and October 21, 2022.[55][56][57]

In March 2023, the U.S. Department of Commerce added 28 additional Chinese firms to the Entity List, including Inspur and Loongson, for acquiring American technology in support of the PLA.[58][59] In October 2023, the Department of Commerce added Biren Technology and Moore Threads to the Entity List.[60][61]

Sanctions on producers of fentanyl and drug money launderers

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Fentanyl. 2 mg (white powder to the right) is a lethal dose in most people.[62] US penny is 19 mm (0.75 in) wide.
See also: Opioid epidemic in the United States and China and the opioid epidemic in the United States

In April 2023, OFAC sanctioned two companies and four individuals in China, pursuant to Executive Order 14059, for supplying precursor chemicals for fentanyl production to drug cartels in Mexico.[63][64] In May 2023, OFAC sanctioned an additional seven companies and six people in China for supplying equipment to cartels for fentanyl production.[65] In June 2023, U.S. federal prosecutors announced criminal indictments of fentanyl precursor producers in China.[66] In October 2023, OFAC sanctioned a China-based network of fentanyl manufacturers and distributors.[67][68] In July 2024, OFAC sanctioned individuals in China accused of money laundering for the Sinaloa Cartel.[69]

Prohibition of U.S. investments in key technologies in China

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In August 2023, President Biden issued Executive Order 14105, titled “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern” (the Outbound Order), which prohibits U.S. investments in semiconductors and microelectronics, quantum information technologies, and artificial intelligence technologies in China.[70][71] In October 2024, the U.S. Treasury Department issued regulations implementing the Outbound Order.[72][73]

[edit]

In May 2024, the U.S. Commerce Department added 37 units of China Electronics Technology Group Corporation (CETC) to the Entity List for their role in the 2023 Chinese balloon incident.[74]

Sanctions under the Uyghur Forced Labor Prevention Act

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In September 2023, United States Department of Homeland Security banned imports on three Xinjiang-based companies including the wool textile manufacturer Xinjiang Tianshan Wool Textile.[75] In May 2024, the U.S. Department of Homeland Security banned imports from 26 Chinese textile companies under the Uyghur Forced Labor Prevention Act.[76] In October 2024, the department also banned two Xinjiang-based companies including the steel maker Xinjiang Ba Yi Iron and Steel.[77]

[edit]
Further information: International sanctions against North Korea

In July 2024, the U.S. sanctioned several individuals and entities in China for their alleged involvement in the procurement of items for North Korea's ballistic missile and space programs.[78][79]

Cyberattack actors

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In December 2024, OFAC sanctioned Sichuan Silence Information Technology Company while federal prosecutors indicted one of its employees for ransomware attacks.[80][81]

See also

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References

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