On Thursday, the US government added 37 Chinese entities to its trade blacklist, some of which are suspected to be involved in last year’s incident where a Chinese spy balloon flew over US airspace. Other Chinese companies on the blacklist are accused of supporting Chinese military forces or aiding Russia’s invasion of Ukraine.
According to Reuters, the US Department of Commerce stated that some subsidiaries of China Electronics Technology Group were added to the trade blacklist for allegedly trying to acquire US technology to support China’s quantum technology capabilities. Due to the military applications of these technologies, it poses a “serious impact on US national security.”
China Electronics Technology Group, a top military equipment supplier affiliated with the Chinese government, was included in the list.
The measures announced by the US Department of Commerce on Thursday indicate that the Biden administration is continuing to counter the Chinese spy balloon issue. The incident of the Chinese spy balloon flying over US airspace in February 2023 sparked anger in the US political circles and led Secretary of State Blinken to cancel his planned visit to China.
In February 2023, the Department of Commerce added five companies and a research institution to the entity list, citing their support for China’s military modernization efforts, particularly in aviation and aerospace projects, including airships and balloons. The companies blacklisted by the US Department of Commerce at the time included Beijing Nanjiang Aeronautical Technology Co., Ltd., China Electronics Technology Group Company 48th Research Institute, Dongguan Lingkong Remote Sensing Technology Co., Ltd., Eagles Men Aviation Science and Technology Group Co., Ltd., Guangzhou Tianhai Flying Aviation Technology Co., Ltd., and Shanxi Eagles Men Aviation Science and Technology Group Co., Ltd.
Due to concerns that China may enhance its military capabilities through civil-military fusion strategy, the US actively uses trade restriction lists to prevent the flow of US technology to China.
Once a company is added to the entity list, it becomes challenging for them to obtain products and technology from US suppliers.
On Thursday, the Biden administration also added several other Chinese entities to the list for attempting to acquire US goods for manufacturing drones used by the Chinese military and other organizations to transport controlled items to Russia.