Founder of Trump-Blacklisted Firm Ostracized in China Too

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Jan 15 2021, 3:43 PMJan 15 2021, 4:05 PMJanuary 15 2021, 3:43 PMJanuary 15 2021, 4:05 PM

(Bloomberg) -- The man who runs a Chinese company put on President Donald Trump’s blacklist because it allegedly poses a threat to national security can’t even buy a high-speed train ticket or stay in a posh hotel, Chinese court rulings show.

Wang Jing, who has a 97% stake in Beijing Tianjiao Aviation Industry Investment Co., or Skyrizon, has been issued with four court orders limiting his company and his personal spending. The U.S. Commerce Department added Skyrizon to a military end-user list on Friday, saying the company’s push to acquire and “indigenize” foreign military technologies posed a significant threat to national security and foreign policy interests.

Watch: U.S. Commerce Secretary Ross speaks on Bloomberg TV about Cnooc, Skyrizon

Skyrizon last surfaced in the news in August when Ukrainian businessman Oleksandr Yaroslavskyy partnered with it in its attempt to buy aerospace company Motor Sich PJSC, which makes aircraft engines, helicopters and power production equipment. Ukrainian President Volodymyr Zelenskiy has a complicated relationship with the U.S. after a phone call with Trump in July became the foundation of a whistleblower complaint alleging that Trump held up military aid for Ukraine to pressure Zelenskiy to investigate Trump’s political rivals. The phone call became the centerpiece in Trump’s first impeachment.

News service Interfax reported in October that Skyrizon and Yaroslavskyy’s company DCH Group resubmitted a joint application to Ukraine’s antitrust regulator to push the deal forward after an initial application was rejected.

Skyrizon isn’t a familiar name in China. The company, founded in 2014, has 19 employees and its main business is investment management, according to registration filings. Calls to Skyrizon’s general telephone line went unanswered and attempts to contact Beijing Xinwei Technology Group Co., another company of Wang’s, were similarly unsuccessful. Skyrizon also doesn’t appear to have a website.

According to a court ruling dated Dec. 16, Wang was ordered not to buy any first-class air or boat tickets and also isn’t allowed to travel by high-speed train. Both he and Skyrizon are restricted from buying or renting office space in high-end buildings, and travel for leisure is also forbidden.

The raft of restrictions stem from Skyrizon’s failure to pay another company, according to the documents, which didn’t provide further details including how much money is owed or how long the restrictions last. Information carried on a business registration website shows Skyrizon was ordered by courts to pay various companies 1.5 billion yuan ($232 million), more than its registered capital.

It’s not just Skyrizon that’s facing problems. Xinwei Technology is suspended from the Shanghai stock exchange. The company failed to repay 1.5 billion yuan of bonds in June and has faced accusations of concealing relationships with affiliates.

Companies that find themselves on the Military End-User list are denied access to American technology without specific permission. Another company added on Thursday was China National Offshore Oil Corp., or Cnooc, the nation’s main deepwater oil explorer. The Commerce Department’s move follows a December decision to blacklist more than 60 other Chinese companies.