Home China Spy Balloon-Linked Firms Hit By US Curbs On 37 Chinese Entities

Spy Balloon-Linked Firms Hit By US Curbs On 37 Chinese Entities

The new restrictions indicate the US is continuing to punish Beijing over the spy balloon incident of February 2023.

WASHINGTON: Several outfits linked to the spy balloon that crossed over the US last year are among the 37 Chinese entities added to US a trade restriction list Thursday.

Some units of China Electronics Technology Group were also on the Commerce Department list. They were reportedly trying to obtain US technology to support China’s quantum technology capabilities. This “has serious ramifications for U.S. national security” due to their military applications, the commerce department said.

State-owned China Electronics Technology Group is reportedly a top military equipment supplier.

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The restrictions show the US is continuing to punish Beijing over the spy balloon incident of February 2023. The balloon drifted over the United States, fuelling nationwide outrage until it was shot down. It prompted Secretary of State Antony Blinken to cancel a trip to China and almost froze bilateral ties.

That month, the Commerce Department added five companies and one research institute to the entity list. They were mostly supporting “China’s military modernization efforts, specifically the People’s Liberation Army’s (PLA) aerospace programs including airships and balloons.”

China said it was a weather balloon that had blown off course, and accused the US of overreacting.

The US trade restriction or entity list has been used aggressively to stem the flow of technology to China. Being added to the list makes it harder for U.S. suppliers to ship to the targeted entities.

Thursday’s list also had some entities trying to obtain items for making drones. Some others were reportedly shipping controlled items to Russia.
(REUTERS)