US punishes China over Russian arms
CAATSA STRIKES Signal to others to think twice on defence deals with Russia
WASHINGTON/BEIJING : The Trump administration has sanctioned the Chinese military for buying Russian military gear, including the S-400 air defence system that India plans to acquire, and said other countries with similar shopping lists should “think twice”.
The US action against China on Thursday, taken after President Donald Trump signed an executive order, was the first instance of secondary sanctions imposed under the Countering America’s Adversaries Through Sanctions Act (CAATSA). The 2017 law seeks to punish Russia for invading Ukraine and interfering in the US elections of 2016.
An angry China called on the US on Friday to withdraw the sanctions or “bear the consequences”.
Foreign ministry spokesman Geng Shuang told a news briefing: “The Chinese side expresses strong indignation over the above-mentioned unreasonable practices of the US side.”
But President Donald Trump continued to hit out at China, signalling tensions fuelled by a trade war are unlikely to ease soon. “It’s time to take a stand on China,” he said in an interview with Fox News. “We have no choice. It’s been a long time. They’re hurting us.”
The sanctioned Chinese agency, Equipment Development Department (EDD), is part of the Chinese Military Commission and tasked with research, development and procuring defence equipment. The US said it was sanctioned for buying ten Su-35 combat jets and S-400 systems delivered in December and January.
Apart from sanctioning EDD, the US also designated its director Li Shangfu. The sanctions would mean denial of export licenses and a block on foreign exchange transactions in US jurisdiction.
A senior administration official who briefed reporters on the action said the US hoped “that at least this step will send a signal of our seriousness and perhaps encourage others to think twice about their own engagement with the Russian defence and intelligence sectors”.
He said a determination is yet to be made for “other potential recipients of the S-400” though discussions are on with such countries. Without naming these countries, the official said, “We have made it very clear to them that…systems like the S-400 are a system of key concern with potential CAATSA implications.”
India plans to buy five Russian S-400 systems at an estimated cost of $6 billion and has pressed US officials for a waiver under the authority granted to the president through a recent amendment to CAATSA. The amendment was sought by senior officials such as defence secretary Jame Mattis and secretary of state Mike Pompeo.
India’s request for a waiver came up at the inaugural 2+2 talks in New Delhi this month, as did the possibility of waivers from Iran-related sanctions that seek to compel buyers of Iranian crude to cut purchases to zero by November 4.