US Commerce Department Blacklists Six Chinese Companies for Military Modernisation
The US Commerce Department has blacklisted six Chinese companies for supporting Beijing's military modernisation efforts, particularly relating to aerospace programmes, including airships and balloons. Last week, a Chinese balloon that was thought to be conducting surveillance flew over the US, escalating the political tensions between the US and China, the two biggest economies in the world. As a result, the US has taken action.
The entities, including Beijing Nanjiang Aerospace Technology Co., China Electronics Technology Group Corporation 48th Research Institute, Dongguan Lingkong Remote Sensing Technology Co., Eagles Men Aviation Science and Technology Group Co., Guangzhou Tian-Hai-Xiang Aviation Technology Co., and Shanxi Eagles Men Aviation Science and Technology Group Co., have been targeted for “their support to China’s military modernization efforts, specifically the People’s Liberation Army’s (PLA) aerospace programs including airships and balloons,” the Department of Commerce's Bureau of Industry and Security stated.
Under Secretary of Commerce for Industry and Security Alan Estevez said, China’s “use of high-altitude balloons violates our sovereignty and threatens US national security.” Deputy Secretary of Commerce Don Graves added, The Commerce Department will not hesitate to continue to use the Entity List and our other regulatory and enforcement tools to protect US national security and sovereignty.
The move, which comes after the US last week downed a Chinese balloon that's suspected of being used for surveillance, will likely only increase the tension between the two countries. Firms that are included on the Entity List are not allowed to acquire US commodities or technologies without receiving clearance from the government. The Department said that this will protect US national security by imposing additional US government oversight on exports of items subject to US jurisdiction and sends a clear message to companies, governments, and other stakeholders globally that the entities on the list present a threat to national security.
Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod said, Today’s action demonstrates our concerted efforts to identify and disrupt the PRC’s use of surveillance balloons, which have violated the airspace of the United States and more than forty countries. He added, Export Enforcement will vigilantly monitor and prevent shipments to the listed parties and investigate any efforts to circumvent these restrictions.
0. “Spy balloon: U.S. blacklists 6 Chinese entities with ties over aerospace program” Global News, 11 Feb. 2023, https://globalnews.ca/news/9480181/spy-balloon-u-s-blacklists-6-chinese-entities/
1. “US restricts 6 Chinese companies tied to airships and balloons” erienewsnow.com, 11 Feb. 2023, https://www.erienewsnow.com/story/48364914/us-restricts-6-chinese-companies-tied-to-airships-and-balloons
2. “US adds six China entities tied to balloon programme to export blacklist” CNA, 10 Feb. 2023, https://www.channelnewsasia.com/world/united-states-china-spy-balloon-entities-export-blacklist-3270876
3. “US restricts 6 Chinese companies tied to airships and balloons” CNN, 11 Feb. 2023, https://www.cnn.com/2023/02/11/business/spy-balloon-us-restricts-chinese-companies-intl-hnk/index.html
4. “Commerce Department Adds Six Companies Linked to Chinese Surveillance Balloon to Trade Blacklist – HS Today” HSToday, 11 Feb. 2023, https://www.hstoday.us/industry/industry-news/commerce-department-adds-six-companies-linked-to-chinese-surveillance-balloon-to-trade-blacklist/
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