After U.S. Treasury Secretary Janet Yellen expressed optimism that Sino-US relations have improved over the past year on Thursday (May 9) local time, the U.S. Department of Commerce issued a surprise statement almost at the same time, once again stepping up its crackdown on Chinese companies.
According to the U.S. Department of Commerce, 37 Chinese entities have been added to the so-called "entity list", including a number of research institutes under the China Electronics Technology Group, CETC Chip Technology (Group) Co., Ltd., University of Science and Technology of China and other technology giants, as well as a number of quantum technology research institutions and satellite navigation and drone technology companies.
The justification given by the U.S. Department of Commerce is still the same as the old national security and foreign policy interests. The ministry claims that the current administration has added 355 Chinese entities to the "Entity List," a record high. By comparison, only 306 Chinese entities have been subject to similar sanctions during the Trump administration.
Of the new sanctions, 22 entities are listed for their involvement in China's quantum technology, four are related to drones, and 11 are involved in the so-called "China High-Altitude Balloon Program." The U.S. Assistant Secretary of Commerce stressed that preventing Chinese companies from gaining access to the technology needed for quantum, drones, and high-altitude programs is critical to U.S. national security.
This action contrasts sharply with Yellen's remarks and shows the contradictions of US policy toward China. Just two days ago, the U.S. government also announced that it had revoked Intel and Qualcomm's licenses to Huawei to export chips, a decision that has negatively impacted Intel's revenue for the next quarter.
China's Ministry of Commerce (MOFCOM) quickly responded by stating that the US has broadened the concept of national security, politicized economic and trade issues, abused export control measures, and imposed unreasonable sanctions and suppressive measures against Chinese companies, which China firmly opposes. The Chinese side pointed out that the US approach has seriously violated its commitments to "not seek decoupling from China" and "not hinder China's development", and runs counter to its statement of "accurately defining national security".