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UPDATE 2-Chinese companies hit with US trade restrictions over spy balloon incident

UPDATE 2-Chinese companies hit with US trade restrictions over spy balloon incident
The Biden administration added 37 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. The moves announced Thursday show the Biden administration is continuing to punish Beijing over the spy balloon, which drifted over the United States in February 2023, fueling political outrage in Washington and prompting State Department Secretary Antony Blinken to cancel a trip to China.

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The Biden administration has added 37 Chinese entities to a trade restriction list, including some for allegedly supporting a spy balloon that flew over the United States last year. The Commerce Department also added some units of China Electronics Technology Group to the list for allegedly trying to obtain American technology to support China's quantum technology capabilities, with serious ramifications for U.S. national security. This move is seen as a continuation of the administration's punishment of Beijing over the spy balloon incident, which had fueled political outrage in Washington. 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 about its military capabilities. This decision makes it harder for U.S. suppliers to ship to the targeted entities.

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