106 model aircraft, one prototype of China's home developed large passenger C919 jetliner, completes its first flight in Shanghai on December 27, 2019, according to the Commercial Aircraft Corporation of China (COMAC). Photo:China News Service

Chinese experts have slammed US government's latest move to publish a list of Chinese enterprises, allegedly with military connections, calling it "ridiculous" and sets a bad precedent. 

Reuters reported that The Trump administration on Monday published a list of Chinese companies with alleged military ties that will restrict them from buying a wide range of US goods and technology.

The list has 58 are designated under China, down from 89 in a preview draft, as Commercial Aircraft Corporation of China (COMAC) was removed, but seven Aviation Industry Corporation of China (AVIC) remain on the list.

"It shows that the US is facing great pressure both domestically and internationally, reading from the list made before and after," Wang Ya'nan, chief editor of Aerospace Knowledge magazine, told the Global Times on Tuesday.

COMAC has a strong linkage to the global supply chain. If it is included in the list, the opportunities between China and the world's civil aircraft manufacturing industry may be affected, hence why the US government removed it from the list, Wang said.

As with AVIC, if the US makes the decision based on alleged military connections, the US  makes it no sense to define whether a company should be sanctioned, most of the US aerospace companies also have close ties with its military, Wang added.

AVIC is an important part in global subcontracting for international civil aircraft manufacturing firms and also a partner of the US and European businesses. If included in the list, the aviation manufacturing industry of the world will be impacted, Wang explained.

"It's made up and a meaningless list," Wang said.

The list comes after Trump administration made the addition of dozens of Chinese companies to another US trade blacklist, including the country's top chipmaker, SMIC, and Chinese drone manufacturer DJI on Friday.

China's Foreign Ministry on Friday criticized the reported move by calling it "another example that the US is using its state power to suppress Chinese companies, and China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese companies.

Companies like Boeing promote the globalization of their supply chains based on cost and efficiency considerations, transferring some non-core technologies to overseas partners, is beneficial to the US, and conducive to strengthening dominant position of the core technologies owned by the US, Chinese experts say.

If all civil aircraft production is brought back to the US as the Trump administration has asked for the return of unprincipled manufacturing back to the US, it will not only lead to a fall in supply chain efficiency, but its place as a global core technology leader would be weakened. 

"It is not conducive to the development of US technology in a long run," Wang added. 

Global Times