US adds 37 more Chinese companies to sanctions list

The US announced that it has added 37 Chinese companies operating in the fields of quantum and nuclear energy technologies and unmanned aviation to an “entity list” that will be subject to export controls. The US Department of Commerce announced that measures were taken against the companies in question due to their activities contrary to the national security and foreign policy interests of the US. The statement conveyed that 22 of the companies were added to the sanctions list due to “their roles in China’s advancements in the field of quantum technologies and their acquisition or attempting to acquisition of technologies developed in the US in this field,” and that these activities could have concrete applications in the military field and therefore pose a threat to US national security. The statement noted that some of these companies are also linked to China’s nuclear programs and “they transferred certain materials under Russia’s control to Ukraine following its invasion of Ukraine.” The statement stated that 11 companies were added to the sanctions list due to their roles in China’s High Altitude Balloon program, and pointed out that these sanctions were added to the sanctions imposed on 6 Chinese companies operating in this field following the crisis that arose when China’s high altitude balloon entered US airspace in February 2023. The statement also reported that four companies were included on the list on the grounds that they attempted to obtain US-origin products used in unmanned aerial vehicle systems for use by the Chinese military. Reaction from China In a statement regarding the injunction, Chinese Foreign Ministry Spokesperson Lin Cien argued that the US was abusing the entity list and export controls to target Chinese companies. Regarding the claim that controlled materials were transferred to Russia, Spokesperson Lin said, “China and Russia have the right to establish normal economic and trade relations, and this cooperation cannot be restricted by external interference.” Stating that the US has long suppressed Chinese companies on the grounds of “national security risks” but has not provided any evidence on this issue, Lin said, “We call on the US to stop overly stretching the concept of national security, politicizing or using trade and technology issues as weapons, and suppressing Chinese companies using different sanctions lists.” Lin emphasized that Chinese companies will do what is necessary to protect their legitimate rights and interests. Products or services cannot be sold to companies on the US export control list without special permission from the government.