The United States blacklisted six Chinese entities that it claims to have connections with Beijing's aerospace programs in response to a suspected Chinese spy balloon flying over US territory, as reported first by AP on Friday, Feb. 10.

The Biden administration's promise to consider more measures to combat Chinese monitoring activities was also followed by economic restrictions, which will make it more challenging for the five corporations and one research institute to purchase US tech exports.

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(Photo : JIM WATSON/AFP via Getty Images)
An aide speaks outside the Senate SCIF (Sensitive compartmented information facility) on Capitol Hill in Washington, DC, on February 9, 2023, as US senators receive a classified briefing on the Chinese balloon incident.

US-China Relationship

The alleged spy balloon was spotted on Feb. 4  flying toward South Carolina's coast. An F-22 fighter jet's missile took down the flying object the following day off Myrtle Beach, following President Joe Biden's orders.

The balloon's sighting added more tensions to the US-China relationship which came at a time when Secretary of State Antony Blinken postponed an important diplomatic trip to Beijing.

Beijing maintains that the balloon was a weather craft that had veered off course, despite the US claim that it was designed to gather intelligence signals. However, it accused Washington of committing a "violation of international practice" when it took down the balloon.

Read also: Dutch, US Officials to Discuss Potential New Restrictions on Exporting Chip-Making Gears to China

Entity List

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

"The Commerce Department will not hesitate to continue to use the Entity List and our other regulatory and enforcement tools to protect U.S. national security and sovereignty," Deputy Secretary of Commerce Don Graves said on Twitter. 

"The PRC's use of high-altitude balloons violates our sovereignty and threatens US national security. Today's action makes clear that entities that seek to harm US national security and sovereignty will be cut off from accessing US technologies," Under Secretary of Commerce for Industry and Security Alan Estevez said in a statement

As a result of the current rule, requests for licenses from the Bureau of Industry and Security (BIS) are likely to be turned down for any transactions with these entities that contain items covered by the Export Administration Regulations (EAR). 

In related news, the US military has once again taken down an unknown flying object flying off the isolated northern coast of Alaska on Friday.

Officials said that it was about the size of a small car and significantly smaller than the alleged surveillance balloon shot down by Air Force fighter planes last week.

However, little is still known about the object, especially if it contained any surveillance tech and where it came from. 

Related Article: US-China Tech War: ASML, Lam Research Pulls American Engineers From China Amid New Chip Restrictions

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