Chinese companies hit with US trade restrictions over spy balloon incident

By Thomson Reuters May 9, 2024 | 10:51 AM

WASHINGTON (Reuters) -The Biden administration added dozens of Chinese entities to a trade restriction list on Thursday, including some for allegedly supporting the spy balloon that flew over the United States last year, heightening tensions between Beijing and Washington.

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 U.S. national security” due to their military applications.

Media have said state-owned China Electronics Technology Group is a top military equipment supplier.

The trade restriction list, known as the entity list, has been used aggressively by the United States to stem the flow of technology to China amid concerns Beijing could use it to bolster its military capabilities.

Being added to the list makes it harder for U.S. suppliers to ship to the targeted entities.

China Electronics Technology Group could not immediately be reached for comment. The Chinese embassy in Washington did not immediately respond to a request for comment

(Reporting by Caitlin Webber, Karen Freifeld and Alexandra Alper; Writing by Alexandra Alper; Editing by Jonathan Oatis)