The U.S. Donald Trump administration stated on June 22 (local time) that the Chinese government's sanctions against U.S. defense companies amount to an admission that Chinese suppliers are unreliable.

In response to an inquiry regarding the sanctions initiated by China's Ministry of Commerce and Ministry of Finance against U.S. firms, a U.S. administration official replied, "Beijing's response is merely an admission that its own suppliers cannot be trusted."

The official emphasized, "The Department of Defense's 1260H procurement regulation is intended to help ensure a secure and reliable supply chain for the U.S. military."

The 1260H procurement regulation is a provision of the National Defense Authorization Act (NDAA) that allows the U.S. Department of Defense to compile and manage a list of Chinese military companies deemed to be supporting the Chinese military (People's Liberation Army).

On June 8, the Department of Defense added 188 entities to this list, including Chinese big tech firms Alibaba and Baidu, and electric vehicle manufacturer BYD, labeling them as "Chinese military companies operating directly or indirectly within the United States."

While the sanctions do not take effect immediately, these companies are highly likely to face disadvantages in future government procurement projects.

The Chinese Ministry of Commerce announced the previous day that it would impose export controls on dual-use items for 10 U.S. companies related to defense, drones, and rare earths.

Additionally, the Ministry of Finance announced that 46 U.S. defense firms, including Lockheed Martin, General Dynamics, Raytheon, and Boeing, would be excluded from Chinese government procurement.

This move is seen as a retaliatory measure by China against U.S. defense and rare earth companies, following the U.S. announcement of potential disadvantages for China's high-tech industrial firms.

The U.S. official's response is interpreted as a defense of the legitimacy of its own measures, signaling an intent to exclude "unreliable" Chinese companies from government supply chains in the future.

(Photo: AP, Yonhap News)