State Dept. Mum on Possible Sanctions Against Chinese Companies Accused of Backfilling
The State Department declined to say whether the U.S. will impose financial sanctions against the Chinese companies accused by the Commerce Department last week of helping Russia evade export controls. Rep. Michael McCaul, R-Texas, last week called on the agency to impose the sanctions (see 2206300007) and go beyond Commerce’s move of adding them to the Entity List (see 2206280056).
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“This is normal course-of-business enforcement actions” against the Chinese companies “that have been backfilling for Russia,” a State Department spokesperson said July 1. “We have not seen the [People’s Republic of China] engage in systematic evasion or provide military equipment to Russia.”