The Biden administration has added a dozen Chinese companies involved in supporting China’s military quantum computing applications to a trade blacklist.

In a press release on Wednesday, Nov. 24, U.S. Commerce Department announced that its Bureau of Industry and Security (BIS) has issued a final rule adding 27 foreign entities and individuals to the Entity List for engaging in activities that are contrary to the national security or foreign policy interests of the United States.

Among the blacklisted include eight Chinese technology entities which were added for their alleged role in assisting the Chinese military’s quantum computing efforts, such as counter-stealth and counter-submarine applications, and the ability to break encryption or develop unbreakable encryption.

These China-based technology entities also support the U.S. military modernization of the Chinese army and/or acquire and attempt to acquire U.S. origin-items in support of military applications.

Today’s action will also restrict exports to PRC electronics producers that support the People’s Liberation Army’s military modernization efforts.

Sixteen entities and individuals operating in China and Pakistan were added to the Entity List based on their contributions to Pakistan’s unsafeguarded nuclear activities or ballistic missile program.

The Entity List is a tool aimed to restrict the export, re-export, and in-country transfer of items subject to the Export Administration Regulations (EAR) to individuals or organizations reasonably believed to be involved, have been involved, or pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States.

The bureau also blacklisted some entities and individuals in Japan and Singapore. In addition, one entity based in Russia was added to the Military End-User list.

“Global trade and commerce should support peace, prosperity, and good-paying jobs, not national security risks,” U.S. Secretary of Commerce Gina Raimondo said. “The Department of Commerce is committed to effectively using export controls to protect our national security.”

According to CNBC, U.S. officials have long accused Chinese companies of collecting sensitive information on behalf of the People’s Liberation Army, though the Chinese Communist Party has refused to acknowledge its engagement in industrial espionage. 

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