U.S. blacklists dozens of Chinese tech firms citing national security concerns

KEY POINTS

• The Biden administration added a dozen Chinese companies to its trade blacklist on Wednesday.
• Of those blacklisted, eight Chinese technology entities were added for their alleged role in assisting the Chinese military's quantum computing efforts.
• U.S. officials have long complained that Chinese companies are beholden to the People's Republic of China and collect sensitive information on behalf of the People's Liberation Army.

Chinese and U.S. flags flutter outside a company building in Shanghai, China November 16, 2021.

Aly Song | Reuters

WASHINGTON – The Biden administration added a dozen Chinese companies to its trade blacklist on Wednesday, citing national security as well as foreign policy concerns.

Eight technology entities based in China were added to the list for their alleged role in assisting the Chinese military's quantum computing efforts and acquiring or attempting "to acquire U.S. origin-items in support of military applications."

U.S. officials have long complained that Chinese companies are beholden to the People's Republic of China and collect sensitive information on behalf of the People's Liberation Army. The Chinese Communist Party has previously said that it does not engage in industrial espionage. 

The Commerce Department also listed 16 entities and individuals operating in China and Pakistan for their work on Islamabad's nuclear and ballistic missile program. In all, the Biden administration added 27 entities and individuals located in the People's Republic of China, Pakistan, Russia, Japan and Singapore.

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

The Chinese Embassy in Washington did not immediately respond to CNBC's request for comment.

The Department of Commerce's entity list places trade restrictions on individuals and entities believed to engage in unfavorable or unethical activity.