The Biden administration added 37 Chinese entities to a trade restriction list, citing their support of the suspected spy balloon that flew over the United States last year. The Commerce Department also included some units of China Electronics Technology Group on the list for allegedly attempting to obtain American technology to enhance China’s quantum technology capabilities, which could have serious repercussions for U.S. national security due to their military applications. State-owned China Electronics Technology Group is known as a top military equipment supplier, but they did not immediately comment on the situation, and the Chinese embassy in Washington did not respond to requests for comment.
The moves signal the Biden administration’s ongoing efforts to penalize Beijing for the spy balloon incident that occurred in February 2023. This incident led to political backlash in Washington, causing Secretary Antony Blinken to cancel a planned trip to China. Previously, the Commerce Department had placed five companies and one research institute on the entity list for supporting China’s military modernization, specifically the People’s Liberation Army’s aerospace programs. China claimed the balloon was a weather balloon that had strayed off course and accused the U.S. of overreacting to the situation.
The entity list has been utilized by the United States to control the transfer of technology to China out of concerns that it could be used to strengthen Beijing’s military capabilities. Inclusion on the list makes it more challenging for American suppliers to provide goods to the targeted entities. In addition to the entities implicated in the spy balloon incident, the Biden administration also added Chinese entities to the list for attempting to procure American items for drone production for the Chinese military, and others for shipping controlled items to Russia. This further demonstrates the administration’s commitment to limiting technology transfer to China and other potential adversaries.
China Electronics Technology Group, designated as a top military equipment supplier, has been specifically called out for its alleged support of China’s military modernization efforts. The Chinese embassy in Washington has not commented on the latest developments, indicating a potential escalation in tensions between the two countries. The restrictions put in place by the Biden administration are aimed at curbing the transfer of sensitive technology to China to prevent the strengthening of their military capabilities, especially following incidents like the spy balloon episode that heightened political tension between Beijing and Washington.
The controversy surrounding the suspected spy balloon incident in 2023 has had lasting effects on U.S.-China relations, with the Biden administration taking a firm stance against entities believed to have supported the incident. By adding them to the trade restriction list, the administration is sending a message that actions with potential national security implications will not be tolerated. China’s responses to these actions and the impact on the broader bilateral relationship remain to be seen, as both countries navigate ongoing tensions and disagreements on a range of issues. The Biden administration’s steps to limit technology transfer to China underscore the importance of safeguarding U.S. national security interests in the face of evolving threats and challenges from strategic competitors.