WASHINGTON - The Biden administration added 37 Chinese entities to a trade restriction list on May 9, including some for allegedly supporting the spy balloon that flew over the US in 2023, heightening tensions between Beijing and Washington.

The Commerce Department also said it was adding some units of China Electronics Technology Group to the list for allegedly trying to obtain American technology to support China’s quantum technology capabilities, “which has serious ramifications for US national security” due to their military applications.

The media has said state-owned China Electronics Technology Group is a top military equipment supplier.

“These activities have substantial military applications and pose a significant threat to US national security,” said the Commerce Department in a statement.

The Chinese Embassy in Washington called the move “blatant economic coercion and bullying in the field of technology”, and said China would resolutely safeguard the lawful rights of Chinese firms and institutions.

Foreign Ministry spokesman Lin Jian said during a regular news briefing on May 10 that China and Russia were entitled to carry out normal economic and trade cooperation without interference or restrictions.

“I’d like to stress that the United States has suppressed Chinese companies for a long time on the grounds of so-called risks to national security, but it has never been able to provide so-called evidence,” he said.

He added: “We urge the US side to effectively abide by the (World Trade Organisation) rules and cancel all domestic tariffs on China, not to mention not to increase tariffs. China will take all necessary measures to defend its rights and interests.”

The US announcement shows the Biden administration is continuing to punish Beijing over the spy balloon, which drifted over the United States in February 2023, fuelling political outrage in Washington and prompting Secretary of State Antony Blinken to cancel a trip to China.

That month, the Commerce Department added five companies and one research institute to the entity list for supporting “China’s military modernisation efforts, specifically the People’s Liberation Army’s aerospace programmes including airships and balloons”.

China’s Foreign Ministry had said it was a weather balloon that had blown off course and accused the United States of overreacting.

The trade restriction list, known as the entity list, has been used aggressively by the US to stem the flow of technology to China amid concerns Beijing could use it to bolster its military capabilities.

Being added to the list makes it harder for US suppliers to ship to the targeted entities.

The Biden administration on May 9 also added a handful of Chinese entities to the list for trying to obtain American items for making drones to be used by the Chinese military and others for shipping controlled items to Russia. REUTERS