US adds 37 China entities to trade blacklist over security concerns

On May 9, the US government added 37 Chinese entities to its trade blacklist, citing national security concerns, with 11 of them accused of being connected with a suspected spy balloon that flew over sensitive areas of the United States last year.

Companies, research institutions and other entities on the list are restricted from doing business with US firms and must gain Commerce Department approval before obtaining goods and technologies from them, per Kyodo.

Of the 37 entities, the department said 22 were put on the list for their links to China's efforts to improve quantum technology and for acquiring or seeking to acquire US-origin items to boost the country's quantum capabilities.

It said some of them are also associated with advancements in China's nuclear programs or have been involved in the export of controlled items to Russia amid its war against Ukraine.

"Today's action is another decisive step in addressing challenges posed by the People's Republic of China and its military modernization," Under Secretary of Commerce for Industry and Security Alan Estevez said in a statement.

He said the United States must remain vigilant in blocking such entities from accessing US technologies that could be used to undermine its national security.

China said it "firmly opposes" the latest step taken by the United States and warned it will "take necessary measures to safeguard legitimate rights and interests of Chinese companies."

"We urge the United States to stop abusing national security and politicizing and weaponizing the concept and stop using the groundless list to suppress Chinese companies," Chinese Foreign Ministry spokesman Lin Jian told a press conference in Beijing on Friday.