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US Restricts Access to American Tech for More Chinese Companies: Escalation in US-China Tech Tensions Continues

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Washington, D.C., May 9, 2024 – The United States has expanded its list of Chinese companies restricted from accessing advanced American technologies, citing national security concerns. The newly added entities include the China Electronics Technology Group (CETG) and its subsidiaries.

This move by the US administration comes amidst rising technological tensions between the US and China. Washington fears that Beijing could use American technologies to bolster its military capabilities and conduct espionage against the United States.

Companies Affected

In addition to CETG, several other Chinese companies suspected of engaging in espionage activities against the US were added to the list. These include:

  • Academy of Aerospace Propulsion Technology (AAP)
  • Beijing Lingnan Fire Control Technology Co., Ltd. (BLFCT)
  • China Academy of Sciences (CAS)
  • China Electronics Corporation (CEC)
  • China National Electronics Corporation (CNEEC)
  • Huawei Technologies Co., Ltd. (Note: Huawei was already on the Entity List)
  • Sichuan Haite High-Tech Co., Ltd. (SHTC)
  • Xi’an Microelectronics Technology Institute (XMIC)

Impact of Being on the List

Inclusion on the US Department of Commerce’s “Entity List” makes it difficult for American companies to do business with the listed entities. This restricts them from supplying components, software, and technology to these Chinese companies. In practice, this can significantly hinder their operations and development.

China’s Response

The Chinese government has not yet officially responded to this US decision. However, it is likely to express disapproval and threaten retaliatory measures.

Implications for the Global Economy

The escalation of technological tensions between the US and China could have negative consequences for the global economy. It could disrupt supply chains, slow down technological progress, and lead to higher prices for consumers.

Conclusion

The expansion of the Entity List is another step in the ongoing tech war between the US and China. It is important to monitor developments in this situation and its impact on the global economy and technological advancement.


Sources: Reuters

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