US blacklists Chinese companies helping military

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WASHINGTON – The U.S. government on Wednesday blacklisted a dozen Chinese companies on its trade blacklist for national security and foreign policy reasons, in some cases citing their assistance in developing the Chinese military’s quantum computing efforts.

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.

Latest US action against Chinese companies comes amid mounting tensions https://www.reuters.com/world/asia-pacific/biden-administration-invites-taiwan-its-summit-democracy-2021-11-24 between Beijing and Washington on the status of Taiwan 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 did not immediately respond to a request for comment.

The Commerce Department said that Hangzhou Zhongke Microelectronics Co Ltd, Hunan Goke Microelectronics, New H3C Semiconductor Technologies Co Ltd, Xi’an Aerospace Huaxun Technology and Yunchip Microelectronics were placed on the Commerce Department’s Entity List for their “support for the military modernization of the People’s Liberation. Army.”

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

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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 was added in 2019, cutting it off from some key suppliers and making it difficult for them to produce mobile handsets.

(Reporting by Chris Sanders and Karen Freifeld; Editing by David Clarke, Marguerita Choy and Jonathan Oatis)

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