On Thursday, the Biden administration imposed trade restrictions on 37 Chinese entities, citing various reasons, including alleged support for a spy balloon that flew over the US last year, escalating tensions between Beijing and Washington. Among those added to the list by the Commerce Department are units of China Electronics Technology Group, accused of seeking American technology to advance China’s quantum capabilities, with potential military implications.
Media reports highlight China Electronics Technology Group’s role as a major military equipment supplier. The Chinese embassy condemned the move as “economic coercion,” vowing to protect Chinese firms’ rights. This action underscores the Biden administration’s response to the spy balloon incident, which caused political uproar and led to Secretary of State Antony Blinken canceling a trip to China.
The Commerce Department’s entity list, used to curb technology flow to China, poses challenges for US suppliers seeking to do business with targeted entities. Additionally, the administration added Chinese entities to the list for attempting to acquire American items for drone production and shipping controlled items to Russia.
