The Biden administration has added 37 Chinese entities to a trade restriction list, with specific allegations against some for supporting a suspected spy balloon that flew over the United States. The Commerce Department is also adding units of China Electronics Technology Group to the list for allegedly attempting to obtain American technology to enhance China’s quantum technology capabilities, which poses a threat to U.S. national security due to its military applications. State-owned China Electronics Technology Group is known as a top military equipment supplier, but the Chinese embassy in Washington did not immediately respond to a request for comment on the matter.
The tensions between Beijing and Washington are escalating as the Biden administration continues to punish China over the spy balloon incident that occurred in February 2023. The Commerce Department previously added companies and a research institute to the entity list for their support of China’s military modernization efforts, particularly in aerospace programs such as airships and balloons. China’s Foreign Ministry claimed the balloon was a weather balloon that had drifted off course, accusing the United States of overreacting to the situation. These actions by the United States reflect a broader strategy of using the entity list to restrict technology flow to China out of concerns that it could strengthen China’s military capabilities.
Being added to the entity list makes it more difficult for U.S. suppliers to do business with the targeted entities, thereby limiting their access to American technology. In addition to the entities related to the spy balloon incident, the Biden administration has also added Chinese entities to the list for attempting to acquire American items for drone production for the Chinese military, as well as for shipping controlled items to Russia. These actions suggest a comprehensive effort by the U.S. government to prevent Chinese entities from obtaining sensitive technology that could be used for military purposes.
The tensions between the United States and China are further exacerbated by these trade restrictions, which are seen as part of a broader effort to counter China’s military advancements. The addition of Chinese entities to the trade restriction list reflects the Biden administration’s determination to enforce measures aimed at curbing Chinese access to American technology with military implications. In response to the allegations and trade restrictions, China has not provided immediate comments on the matter, leaving the situation unresolved and potentially leading to further confrontations between the two nations.
The trade restriction list, known as the entity list, is a significant tool used by the United States to control technology transfers to China, specifically to prevent the strengthening of Beijing’s military capabilities. The list has been employed aggressively by the Biden administration, in particular to address concerns related to China’s military modernization efforts. The targeted Chinese entities face challenges in acquiring American technology due to their inclusion on the list, impacting their ability to advance their technological capabilities and potentially affecting their military development strategies. The use of the entity list underscores the United States’ commitment to safeguarding its national security interests and addressing the evolving geopolitical challenges posed by China.
