May 10, 2024
2 mins read

US slaps curbs on 37 Chinese entities over spy ballon incident

Among them are entities allegedly linked to the spy balloon incident that stirred controversy last year, further fuelling tensions between the two global powers…reports Asian Lite News

In a move intensifying the already strained relations between Beijing and Washington, the Biden administration announced the addition of 37 Chinese entities to a trade restriction list on Thursday.

Among them are entities allegedly linked to the spy balloon incident that stirred controversy last year, further fuelling tensions between the two global powers.

The Commerce Department’s decision included certain units of China Electronics Technology Group, accused of seeking American technology to enhance China’s quantum technology capabilities with potential military applications, posing significant concerns for US national security.

Media reports have identified China Electronics Technology Group as a major supplier of military equipment for the Chinese government, although the group has yet to respond to the allegations.

“Today’s action is another decisive step in addressing challenges posed by the People’s Republic of China and its military modernisation,” said Under Secretary of Commerce for Industry and Security Alan F. Estevez. “We must remain vigilant in our efforts to prevent entities such as these from accessing U.S. technologies that could be used in ways that harm our national security.”

US-China flag

Reacting strongly to the move, the Chinese embassy in Washington condemned it as “blatant economic coercion and bullying in the field of technology,” affirming China’s determination to defend the legitimate rights of its firms and institutions.

The Biden administration’s action signifies its persistent response to the spy balloon incident, which occurred in February 2023, triggering political uproar in the US and leading to the cancellation of Secretary of State Antony Blinken’s planned trip to China.

The Commerce Department had previously added five companies and a research institute to the entity list for their purported support of China’s military modernization efforts, particularly the People’s Liberation Army’s aerospace programs.

Recently, the Biden administration had issued a probe into Chinese-made electric vehicles, or EVs, and calls to increase tariffs on the import of solar panels from China to protect domestic producers.

The Biden administration has said it would investigate Chinese-made digitally connected vehicles, citing potential national security risks and concerns over their capability to collect sensitive information about American users, VoA reported.

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