The United States puts Chinese aid companies on the trade blacklist

Chinese and American flags fluttering outside a corporate building in Shanghai, China November 16, 2021. REUTERS / Aly Song

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

The department also said more units and individuals from China and Pakistan were added to the Ministry of Commerce’s unit list to contribute to Pakistan’s nuclear activities or ballistic missile program.

The recent US action against Chinese companies comes amid growing tensions between Beijing and Washington over the status of Taiwan and trade issues.

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A total of 27 new units were added to the list from China, Japan, Pakistan and Singapore.

Trade Minister Gina Raimondo said in a statement that the new lists would help prevent US technology from supporting the development of Chinese and Russian “military progress and non-proliferation activities such as Pakistan’s unsecured nuclear activities or ballistic missile program.”

The Chinese Embassy in Washington did not immediately respond to a request for comment.

The Department of Commerce said Hangzhou Zhongke Microelectronics Co., Ltd., Hunan Goke Microelectronics (300672.SZ), New H3C Semiconductor Technologies Co., Ltd., Xi’an Aerospace Huaxun Technology and Yunchip Microelectronics were placed on the Ministry of Commerce’s unit list for their “support for military modernization of the People’s Liberation . “

It also added the Hefei National Laboratory of Physical Sciences at Microscale, QuantumCTek (688027.SS) and Shanghai QuantumCTeck Co., Ltd. to the list of “acquisition and attempts to acquire objects originating in the United States in support of military applications”.

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

The Ministry of Commerce wants to stop the Chinese military from developing its counter-stealth technology, which may include equipment such as advanced radars and submarine applications such as submarine sensors. The action also blocks US material being used to help China break encryption or develop unbreakable encryption, the Department of Commerce said.

Suppliers to companies on the device list must apply for a license before they can sell to them, which is likely to be denied.

Separately, the Moscow Institute of Physics and Technology was added to the Ministry of Commerce’s military end-user list, but the list provided no further information other than that it had produced military products.

The Unity List has been increasingly used for national security and foreign policy purposes since the Trump administration. The Chinese telecommunications company Huawei (HWT.UL) was added in 2019, which cuts it off from some key providers and makes it difficult for them to produce mobile phones.

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Reporting by Chris Sanders and Karen Freifeld; Edited by David Clarke, Marguerita Choy and Jonathan Oatis

Our standards: Thomson Reuters Trust Principles.


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