• China Electronics Technology Group is identified as a leading supplier of military equipment.
• Chinese embassy denounces move as “blatant economic coercion and bullying in the field of technology.”
• Biden administration continues to penalize Beijing for the spy balloon incident.

On Thursday, the Biden administration included 37 Chinese entities on a trade restriction list, alleging support for the spy balloon that flew over the United States last year. This action has intensified tensions between Beijing and Washington.

The Commerce Department additionally announced the inclusion of certain units of China Electronics Technology Group on the list. They were accused of attempting to acquire American technology to bolster China’s quantum technology capabilities, with the Commerce Department citing their military applications as having serious ramifications for US national security.

Media reports have identified the state-owned China Electronics Technology Group as a leading supplier of military equipment. China Electronics Technology Group could not be reached for immediate comment.

The Chinese embassy in Washington denounced the move as “blatant economic coercion and bullying in the field of technology.” It stated that China would resolutely safeguard the lawful rights of Chinese firms and institutions.

The announcement indicates that the Biden administration continues to penalize Beijing for the spy balloon incident. The balloon drifted over the United States in February 2023, sparking political outrage in Washington and leading Secretary of State Antony Blinken to cancel a trip to China.

In that month, the Commerce Department placed five companies and one research institute on the entity list for supporting “China’s military modernization efforts, specifically the People’s Liberation Army’s (PLA) aerospace programs, including airships and balloons.”

China’s foreign ministry claimed it was a weather balloon that had blown off course and accused the United States of overreacting.

The United States has aggressively utilized the trade restriction list, known as the entity list, to curb the flow of technology to China amid concerns that Beijing could use it to enhance its military capabilities.

Being added to the list complicates the process for US suppliers to ship to the targeted entities.

On Thursday, the Biden administration also included a handful of Chinese entities on the list for attempting to acquire American items to manufacture drones for use by the Chinese military, as well as for shipping controlled items to Russia.

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