(BRK.A), (BRK.B)
A company owned by Berkshire hatchway is denying that it is connected to the Chinese military, and says it has erroneously been listed on a proposed U.S. Commerce Department list of Military End-Users.
A draft rule released by the U.S. Commerce Department’s Bureau of Industry and Security would add a new “Military End-User” List to its regulations on military-use and end-user export controls.
An initial list of entities identified by BIS as Military End-Users in the new rule includes TTI Electronics Asia PTE Hong Kong Ltd a subsidiary of Berkshire Hathaway’s US-based TTI, Inc.
In a statement, TTI strongly denied that TTI HK is a MEU or that it maintains any ties to Chinese military. They note that they intend to take all available steps to demonstrate to BIS that TTI HK should not be included on the MEU List.
The company says that TTI HK is an authorized distributor of various electronic components, none of which is a military or defense item, and that TTI HK is not an end user or a manufacturer of any items.
“TTI can assure our business partners that neither TTI HK nor any TTI affiliate engages in dealings with the Chinese military. In fact, TTI and all of its affiliates, specifically including TTI HK, take extraordinary measures to ensure full compliance with all laws and regulations, including all US export controls requirements. We firmly believe that BIS has wrongly included TTI HK on the newly proposed MEU List. We want to assure our customers, suppliers, and all business partners that TTI and all of our affiliates have been and will continue to be fully compliant with all applicable laws and regulations, and that we will take all appropriate and available steps to demonstrate to BIS that TTI HK should not be included on the new MEU List.”
© 2020 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.