US slaps trade restrictions on Chinese firms following balloon incident

On Thursday, the U.S. Commerce Department expanded its trade blacklist by adding 37 Chinese entities, citing national security concerns. Among these companies, some are believed to have supported the alleged spy balloon that traversed U.S. airspace last year.

The department highlighted that the actions of these entities, including efforts to procure U.S. goods to enhance China’s quantum technology capabilities, pose a considerable threat to U.S. national security. Entities on the so-called “entity list” face restrictions that prevent them from acquiring U.S. items and technologies without explicit government approval.

This latest update follows a previous action in February 2023 when six Chinese entities were blacklisted in connection with the balloon incident, which saw the balloon travel from Alaska to South Carolina. This event ended with the U.S. military downing the balloon off the east coast, capturing significant public and governmental attention.

In its recent statement, the Commerce Department also linked some of the newly listed entities to the development of China’s nuclear capabilities and to shipping controlled items to Russia post its 2022 invasion of Ukraine.

Alan Estevez, Under Secretary of Commerce for Industry and Security, emphasized the importance of vigilance to prevent these entities from accessing technologies that could endanger U.S. security.

Meanwhile, in response to these sanctions, Beijing expressed strong opposition. Foreign Ministry spokesperson Lin Jian argued at a press conference that China and Russia have the right to engage in regular economic and trade activities without external interference or constraints. Lin criticized the U.S. for its long-standing suppression of Chinese companies under the guise of national security, alleging that the U.S. has failed to provide concrete evidence to support its claims.