'Harmful for Global Supply Chain': China Blasts US for Banning 12 Entities 'Without Factual Basis'

On Wednesday, 25 November, the US blacklisted 27 foreign entities, including 12 from China, over national security concerns. The Chinese firms that were blacklisted are involved in quantum computing and other advanced technologies, which Beijing considers crucial for global supply chains.

China has termed the US sanctions on a dozen Chinese groups groundless, saying it strongly opposes such a move, which is disruptive for the global economy, as these firms are involved in the semiconductor and aerospace businesses.

Chinese Commerce Ministry spokesperson Shu Jueting noted that China will file a complaint with the US on this matter.

"The US imposing new sanctions on 12 Chinese entities without any factual basis is not beneficial to either country, or global economic recovery. It's harmful to the security of the international industrial supply chain," Shu said during a regular media briefing on Thursday.

The spokesperson said that the sanctions against Chinese companies go against the consensus reached by two countries' presidents earlier this month.

During the virtual meeting with Joe Biden on 11 November, Chinese President Xi Jinping described the bilateral trade relationship as "mutually beneficial" while calling on the US not to politicise trade.

China's Foreign Ministry has also made remarks, saying that Beijing "will take all necessary measures to firmly defend the rights of Chinese companies".

"China reserves the right to take necessary countermeasures on US sanctions," Zhao Lijian, the country's foreign ministry spokesperson, said.

On Wednesday, placing 12 Chinese entities involved in quantum computing and other advanced technologies on an export blacklist, the US Commerce Department's Bureau of Industry and Security underscored that the move will prevent the US emerging technologies from being used for China's quantum computing efforts to support military applications.

The export ban makes it impossible for US companies to sell technology to these 12 listed companies.

Washington reportedly has concerns that Chinese firms will gain access to critical American technologies that could help the People's Liberation Army improve its capability to decode the stealth technology of American military hardware, including submarines.

In October, US intelligence officials warned US companies about Chinese efforts to "access technology in areas including quantum computing and artificial intelligence".