The incident had cast a new diplomatic chill between the world’s two leading economic powers… At the beginning of February 2023, a high-altitude Chinese balloon had flown over the United States from west to east for a few days and was shot down above the Atlantic by the American army. Washington had assured that it was a spy balloon, which China had denied, claiming that it had drifted unintentionally into American airspace. The US Department of Commerce then added six Chinese entities to its commercial “blacklist”.
Thursday evening, May 9, the US Department of Commerce announced in a press release that 37 Chinese entities would be added to this blacklist, which now includes 335 names. Entities on this list (which may include companies, research institutes, government and private organizations, individuals and other types of legal entities) are subject to specific requirements and individual export policies, due to of their involvement or suspected involvement “in activities contrary to the national security or foreign policy interests of the United States.”
Among the new entrants, 11 entities are targeted “for their involvement in the Chinese high-altitude balloon program, which poses significant national security problems”, a measure which is “a continuation of previous actions taken by the Department of Commerce in February 2023 to target aerospace programs” of the People’s Republic of China, the document specifies.
Quantum capabilities and the invasion of Ukraine
22 institutes and companies were also added for their participation in China’s progress “in quantum technology”. According to the Department of Commerce, these activities “have significant military applications” and therefore constitute a threat to the national security of the United States. Additionally, some of the targeted entities are linked to advances in China’s nuclear program “or were involved in sending controlled items to Russia following its February 2022 invasion of Ukraine.”
Four entities are also added “for having acquired or attempted to acquire articles of American origin” intended for use by the Chinese army for its drones.
“Protect national security”
“Today’s action is another decisive step in responding to the challenges posed by the People’s Republic of China and its military modernization,” said Alan F. Estevez, Under Secretary of Commerce for Industry and Security. security, cited in the press release.
In this trade war that China and the United States have been engaged in for years, the assistant secretary responsible for enforcing export legislation also believes that preventing “Chinese companies from acquiring technologies that allow the People’s Republic of China to implement its quantum, drone, and high-altitude surveillance programs” is “essential to protecting the national security of the United States.”
The Chinese government also created its own list of “unreliable” companies in 2019.