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US Adds 6 Companies to Trade Restriction List for Military Links

July 2, 2024
US Adds 6 Companies to Trade Restriction List for Military Links

e White House is seen in Washington, U.S., March 27, 2022. REUTERS/Joshua Roberts

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The United States added six companies to its trade restriction list on Tuesday, citing ties to China’s military training, according to a government posting. Among the firms are two in China, one in South Africa, two in the United Arab Emirates, and one in the United Kingdom.

Global Training Solutions Limited and Smartech Future Limited, both based in China, along with Grace Air (Pty) Ltd and Livingston Aerospace Limited from the United Kingdom, were listed due to their connections to the Test Flying Academy of South Africa. These companies were involved in training China’s military forces using Western and NATO sources. The Test Flying Academy was placed on the Entity List last year for similar reasons.

“This activity is contrary to the national security and foreign policy interests of the United States,” the posting stated.

UAE firms Mega Fast Cargo and Mega Technique General Trading were added for evasive conduct and Mega Fast Cargo’s shipment of U.S.-origin goods to Russia.

Companies on the Entity List need licenses to receive US goods and technology, with these licenses likely to be denied by the US Commerce Department. Attempts to reach the listed companies for comment were unsuccessful.

Additionally, the Commerce Department added 13 companies to its Unverified List, including eight from China, due to incomplete on-site visits by U.S. export control officers. US exporters must perform extra due diligence and may need additional licenses before sending items to these companies.

Simultaneously, the department removed eight companies from the Unverified List, including six from China, one from the UAE, and one from Russia.

Both the Entity List and Unverified List are tools the U.S. employs to prevent sensitive American goods and technology from reaching unauthorized users.

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