US blacklists Chinese companies helping military

Chinese and American flags fly in front of a corporate building in Shanghai, China on November 16, 2021. REUTERS / Aly Song

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WASHINGTON, Nov.24 (Reuters) – The U.S. government on Wednesday blacklisted a dozen Chinese companies on its commercial blacklist for national security and foreign policy reasons, in some cases citing their assistance in developing China’s quantum computing efforts. the Chinese army.

The department also said that several entities and individuals from China and Pakistan have been added to the Commerce Department’s list of entities for contributing to Pakistan’s nuclear activities or ballistic missile program.

The latest US action against Chinese companies comes amid growing tensions between Beijing and Washington over Taiwan’s status and trade issues.

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A total of 27 new entities have been added to the list from China, Japan, Pakistan and Singapore.

Commerce Secretary Gina Raimondo said in a statement that the new listings would help prevent US technology from supporting the development of “Chinese and Russian military advances and non-proliferation activities like Pakistan’s unprotected nuclear activities or the ballistic missile program “.

The Chinese Embassy in Washington accused the United States of “using the catch-all concept of national security and abusing state power to suppress and restrict Chinese companies by any means possible.

“China strongly opposes it,” embassy spokesman Liu Pengyu said.

He said the United States should “follow the spirit” of a virtual meeting between US President Joe Biden and Chinese leader Xi Jinping last week and “meet China halfway instead of going over. far on the wrong track “.

The Commerce Department said that Hangzhou Zhongke Microelectronics Co Ltd, Hunan Goke Microelectronics (300672.SZ), New H3C Semiconductor Technologies Co Ltd, Xi’an Aerospace Huaxun Technology and Yunchip Microelectronics have been placed on the Commerce Department’s Entity List. for their “army support for modernizing the People’s Liberation Army.

He also added the Hefei National Laboratory for Physical Sciences at Microscale, QuantumCTek (688027.SS) and Shanghai QuantumCTeck Co Ltd to the list for “the acquisition and attempted acquisition of items of American origin in support military applications ”.

The eight Chinese companies have been listed to prevent US technology from being used to help China develop quantum computing applications for its military.

The Commerce Department wants to prevent the Chinese military from developing its counter-stealth technology, which could include equipment such as advanced radars and counter-submarine applications such as underwater sensors. The action also prevents the use of U.S. hardware to help China break encryption or develop tamper-proof encryption, the Commerce Department said.

Suppliers of companies on the entity list will need to apply for a license before they can sell to them, which will likely be refused.

Separately, the Moscow Institute of Physics and Technology was added to the Commerce Department’s list of military end-users, but the list did not provide additional information that it had manufactured military products.

The entity list has been used more and more for national security and foreign policy purposes since the Trump administration. Chinese telecommunications company Huawei (HWT.UL) was added in 2019, cutting it off from some key suppliers and making it difficult for them to produce mobile handsets.

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Reporting by Chris Sanders and Karen Freifeld; additional reporting by David Brunnstrom; Editing by David Clarke, Marguerita Choy and Jonathan Oatis

Our standards: Thomson Reuters Trust Principles.

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