US blacklists six Chinese companies over links to balloon program

• The US banned six Chinese firms it said were tied to Beijing’s aerospace activities.
• The move is likely to exacerbate the diplomatic spat between the United States and China
• Biden administration’s vow to consider additional actions to counter Chinese espionage activities.

The move against the Chinese enterprises linked to Beijing’s surveillance-balloon program was taken in retribution for a suspected spy balloon flying above the United States.

As part of its retribution for an alleged Chinese surveillance balloon that crossed US airspace, the US banned six Chinese firms it said were tied to Beijing’s aerospace activities.

Following the Biden administration’s vow to consider additional actions to counter Chinese espionage activities, Friday’s economic limitations will make it more difficult for the five corporations and one research organization to purchase American technology exports.

The move is likely to exacerbate the diplomatic spat between the United States and China triggered by the balloon, which was shot down last weekend off the coast of North Carolina.

The US claimed the balloon was geared to detect and gather intelligence signals, but Beijing claims it was simply a weather balloon that had gotten off track.

The incident prompted Secretary of State Antony Blinken to abruptly cancel a high-stakes trip to Beijing aimed at easing tensions.

Military modernization efforts

The US Bureau of Industry and Security said the six entities were being targeted for “their support to China‘s military modernization efforts, specifically the People’s Liberation Army’s (PLA) aerospace programs including airships and balloons.”

“The PLA is utilizing High Altitude Balloons (HAB) for intelligence and reconnaissance activities,” it said.

Deputy Secretary of Commerce Don Graves said on Twitter his department “will not hesitate to continue to use” such restrictions and other regulatory and enforcement tools “to protect US national security and sovereignty.”

Beijing Nanjiang Aerospace Technology Co., China Electronics Technology Group Corporation 48th Research Institute, Dongguan Lingkong Remote Sensing Technology Co., Eagles Men Aviation Science and Technology Group Co., Guangzhou Tian-Hai-Xiang Aviation Technology Co., and Shanxi Eagles Men Aviation Science and Technology Group Co. are the six companies involved.

The research institute did not react immediately to a request for comment. The other five entities were unable to be reached.

On President Joe Biden’s instructions, a US military fighter jet shot down an unexplained object flying off the far northern coast of Alaska on Friday.

The item was shot down because it allegedly posed a threat to the safety of civilian planes, rather than because it was engaged in surveillance.

But the twin incidents in such close succession reflect heightened concerns over China’s surveillance program and public pressure on Biden to take a tough stand against it.

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