US imposes trade restrictions on Chinese companies over balloon accident

“These activities have significant military implications and pose a significant threat to U.S. national security,” the Commerce Department said in a statement.

Companies added to the so-called “entity list” are prohibited from purchasing U.S. goods and technology without government approval.

The latest additions to China’s “high-altitude balloon program” come after the Commerce Department placed six Chinese companies on the trade restriction list in February 2023 due to the balloon accident.

The balloon’s day-long flyover from Alaska to South Carolina caught the attention of many Americans before the U.S. military shot it down off the country’s east coast.

On Thursday, the Commerce Department added that certain targeted companies this time were also linked to advances in China’s nuclear programs or were “involved in supplying controlled goods to Russia” after Moscow’s invasion of Ukraine in 2022.

The latest update to the entity list represents an important step in addressing the challenges posed by China, said Alan Estevez, Undersecretary of State for Trade and Industry and Security.

“We must remain vigilant in our efforts to prevent companies like these from accessing U.S. technologies that could be used in ways that harm our national security,” he added in a statement.

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