Chinese companies hit with US trade restrictions over spy balloon incident

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WASHINGTON — The Biden administration added 37 Chinese entities to a trade restriction list on May 9, including some for allegedly supporting the spy balloon that flew over the US in 2023, heightening tensions between Beijing and Washington.

A suspected Chinese spy balloon drifts down to the ocean after being shot down off the South Carolina coast in the US.

The Commerce Department also said it was adding some units of China Electronics Technology Group to the list for allegedly trying to obtain American technology to support China's quantum technology capabilities, "which has serious ramifications for US national security" due to their military applications.China Electronics Technology Group could not immediately be reached for comment.

That month, the Commerce Department added five companies and one research institute to the entity list for supporting "China's military modernisation efforts, specifically the People's Liberation Army's aerospace programmes including airships and balloons." China's foreign ministry had said it was a weather balloon that had blown off course and accused the US of overreacting.

The trade restriction list, known as the entity list, has been used aggressively by the US to stem the flow of technology to China, amid concerns Beijing could use it to bolster its military capabilities.The Biden administration on May 9 also added a handful of Chinese entities to the list for trying to obtain American items for making drones to be used by the Chinese military and others for shipping controlled items to Russia.

 

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