US adds 6 Chinese entities, linked with spy balloon programme, to trade blacklist

Six Chinese firms linked to Beijing's alleged surveillance balloon programme were added to a export blacklist by the Biden administration on Friday.As per a statement by the Commerce department, these entities are "restricted from obtaining US items and technologies without US government authorisation."

US Commerce Department’s Bureau of Industry and Security (BIS) added six entities in the People’s Republic of China (PRC) to the Entity List for "supporting the PRC’s military modernisation efforts, specifically those related to aerospace programmes, including airships and balloons and related materials and components, that are used by the People’s Liberation Army (PLA) for intelligence and reconnaissance."

The name of the entities are Beijing Nanjiang Aerospace Technology, China Electronics Technology Group Corporation 48th Research Institute, Dongguan Lingkong Remote Sensing Technology, Eagles Men Aviation Science and Technology Group, Guangzhou Tian-Hai-Xiang Aviation Technology and Shanxi Eagles Men Aviation Science and Technology Group.

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."

Deputy Secretary of Commerce Don Graves said, “The Commerce Department will not hesitate to continue to use the Entity List and our other regulatory and enforcement tools to protect U.S. national security and sovereignty.”

“The Entity List is a powerful tool for identifying and cutting off actors that seek to use their access to global markets to do harm and threaten American national security.”

Meanwhile, Under Secretary of Commerce for Industry and Security Alan Estevez stated thatPRC’s use of high-altitude balloons "violates our sovereignty" and "threatens US national security."

“Today’s action makes clear that entities that seek to harm U.S. national security and sovereignty will be cut off from accessing U.S. technologies.”

The Department in conclusion highlighted that as a result of this announcement, "any transactions with these entities that involve items subject to the Export Administration Regulations (EAR) will require a licence from the BIS, and applications for those licences are likely to be denied."

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