The Biden administration recently added 37 Chinese entities to a trade restriction list, citing various reasons including alleged support for a suspected spy balloon incident that occurred last year. The Commerce Department specifically targeted some units of China Electronics Technology Group for attempting to acquire American technology to enhance China's quantum technology capabilities, which could have significant implications for U.S. national security due to their military applications.
China Electronics Technology Group, a state-owned entity known for its role as a top military equipment supplier, has not yet responded to the recent developments. Similarly, the Chinese embassy in Washington has not provided any comments on the matter.
These actions by the Biden administration are seen as a continuation of efforts to hold Beijing accountable for the spy balloon incident that caused political tensions between the two countries. The incident led to the cancellation of a planned trip to China by Secretary of State Antony Blinken.
Previously, in response to the spy balloon incident, the Commerce Department had added five companies and a research institute to the entity list for their alleged support of China's military modernization efforts, particularly in aerospace programs related to airships and balloons.
The entity list, a trade restriction mechanism used by the U.S., aims to restrict the transfer of technology to China amid concerns that such technology could be utilized to strengthen China's military capabilities. Inclusion on the list makes it more challenging for U.S. suppliers to conduct business with the targeted entities.
Furthermore, the Biden administration also added several Chinese entities to the list for attempting to procure American items for drone production for use by the Chinese military, as well as for shipping controlled items to Russia.
