SCHNEIDER, WILSON LETTER CALLING FOR STOP TO RUSSIA SANCTIONS EVASION FOLLOWED BY TOUGH NEW SANCTIONS

LINCOLNSHIRE, IL - Following the receipt of a bipartisan letter from Reps. Brad Schneider (IL-10) and Joe Wilson (SC-02) that called for the strengthening of sanctions enforcement on China-Russia tech transfers, the Biden-Harris Administration announced new sanctions on 398 firms across Russia, China, and more than a dozen other nations accused of enabling Russia's war effort.

"In recent weeks and months, we've seen evidence of China's and others continued role in sustaining Russia's war effort against Ukraine," said Rep. Brad Schneider. "Russia is finding avenues to circumvent sanctions by accessing technologies with help from China that are crucial for producing military equipment. I commend the Biden-Harris Administration for sanctioning those countries who are assisting the Kremlin as it continues its unlawful attack on Ukraine."

The bipartisan letter sent by Rep. Schneider, Rep. Wilson, and 21 other Members of Congress on October 16 called on the Biden-Harris Administration to urgently prioritize efforts to prevent sanctions circumvention by Russia as a part of the U.S.'s efforts to both support Ukraine and also counter China's influence.

"As dictators continue working together to destroy democracy, the Chinese Communist Party continues actively fueling war criminal Putin's mass murder of Ukrainian families by helping Putin get his hands on western technology," said Rep. Joe Wilson. "Congress will not allow tyrants and thieves to weaponize the ingenuity and innovation of free people in their deranged war against those who share our values. I am grateful to have joined colleagues in calling on the administration to utilize every tool at our disposal and will continue to do so."

The full text of the letter is below.

The Honorable Jake Sullivan
National Security Advisor
The White House
1600 Pennsylvania Avenue NW
Washington, D.C. 20500

CC: The Honorable Antony Blinken, Secretary of State; The Honorable Gina Raimondo, Secretary of Commerce; The Honorable Janet Yellen, Secretary of the Treasury

Dear Mr. Sullivan:

We write to acknowledge the Administration's efforts to weaken the Kremlin's military capabilities through sanctions that have disrupted Russia's access to critical technologies. These measures have reinforced the United States' leadership in supporting Ukraine during this challenging time.

Recent developments, however, have raised significant concerns about the continued role of China in sustaining Russia's military-industrial base. It has become increasingly clear that Russia is circumventing the current sanctions regime by accessing advanced industrial equipment through complex procurement networks, many of which involve Chinese entities.

As highlighted in recent analyses, Chinese manufacturers are filling the gap left by Western companies, supplying Russia with crucial CNC (Computer Numerical Control) machines and related technologies. These machines are vital for producing military equipment, including precision-guided munitions, armored vehicles, and UAVs. The continued flow of these critical tools to Russia undermines the effectiveness of our sanctions and prolongs the conflict in Ukraine.

China plays three critical roles in supporting Russia's war machine with CNC machines. First, China serves as a re-export and circumvention hub for CNC machines manufactured in the United States and allied Western countries. Second, CNC products made by Western manufacturers in their Chinese facilities are still entering the Russian market. Finally, China has become the primary supplier of CNC machines to the Russian military-industrial complex, with the Chinese CNC sector being heavily reliant on components and technologies originating from the United States and allied countries. In all these dimensions, Western manufacturers, technologies, and components remain actively present.

We are particularly concerned that Chinese CNC machines, incorporating Western technologies, are increasingly relied upon by Russian military-industrial enterprises to produce advanced weaponry. This shift not only poses a significant threat to Ukraine but also presents a broader

strategic challenge given China's role in supporting an adversary of the United States and our allies.

Given these strategic implications, we believe it is imperative to prioritize this issue as part of our broader competition with China. Ensuring that Russia is denied access to these advanced tools and technologies is essential to supporting Ukraine and aligns with our efforts to counter China's influence. We respectfully urge the administration to take further steps to address this critical vulnerability. Strengthening export and supply chain control enforcement, expanding multilateral cooperation, and targeting key Chinese and other entities involved in these transfers should be central to this effort. By doing so, we can ensure that our sanctions are comprehensive and effective, denying Russia the resources it needs to continue its aggression.

We stand ready to support these efforts and share the goal of upholding international security and supporting Ukraine's sovereignty.

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