The Trump administration is reportedly blocking 89 Chinese aerospace and other companies allegedly having military ties by preventing them from buying various U.S. goods and technologies.
Reuters, who looked at the draft copy of the list, said that if it were published, trade tensions between the two world giants might worsen.
This will also result in huge losses for US companies selling parts and components of civil aviation to China.
However, a spokesman for the Department of Commerce, which produced the list, declined to comment on the matter, while the Chinese foreign ministry did not immediately comment on the matter, Reuters reported.
Among the companies listed in the list are Commercial Aircraft Corp of China Ltd (COMAC) which is leading China's efforts to compete with Boeing and Airbus, Aviation Industry Corporation of China (AVIC) and 10 other related entities.
The list is included in a draft rule that identifies Chinese and Russian companies as ‘military end users’, which in other words means U.S. suppliers need to obtain a license to sell large quantities of commercially available goods to them.
According to the rules, applications for the license are more likely to be rejected.
President Donald Trump is seen using his last moments in the White House by imposing more sanctions on Beijing. Earlier, he had signed an executive order barring US investment in Chinese companies allegedly owned or operated by the Chinese military.
