US adds 7 Chinese aerospace and chip firms to export blacklist

US companies will need an export licence to sell to seven Chinese state-affiliated firms in the aerospace and chips sector after Washington blacklisted them on Wednesday for supporting China’s efforts to modernise its military. The US Commerce Department said in a statement on Tuesday that it would add four research institutes under a Chinese space agency, two under a state-owned military technology firm and a satellite firm to its export blacklist. The list, known officially as the Entity List, includes around 600 Chinese firms deemed to be operating against US national security and foreign policy interests. Since the administration of former US president Donald Trump, the United States has tried to control the flow of strategic technologies to Chinese businesses and, ultimately, the Chinese military-industrial complex. US House approves Chips Act to subsidise and speed up semiconductor production US President Joe Biden signed into law the Chips and Science Act this month to bolster the American chip industry against increasing competition from China. The statute earmarks US$52.7 billion over five years for research and development and to foster semiconductor manufacturing in the US. Recipients of the funds are generally banned from expanding chip-fabrication operations in China and other countries considered to be of concern. “The United States is the global leader in space and aerospace technologies, and [the Office of] Export Enforcement protects that leadership by working to prevent the diversion of sensitive technologies to the Chinese military-civil fusion programme,” Matthew Axelrod, assistant secretary of commerce for export enforcement, said in a statement. “We will continue to leverage all our investigative resources to deny the [People’s Republic of China] access to sensitive US technologies.” The organisations put on the export control list included two research institutes of the China Aerospace Science and Technology Corporation’s (CASC) Ninth Academy, according to the unpublished notice to the Federal Register, the US government gazette. The state-owned firm plays a crucial part in China’s space programme by developing and making the Long March series rockets for the crewed Shenzhou missions and satellite launches. The 771 Research Institute, also known as the Xian Microelectronics Technology Institute, designs and makes semiconductor integrated circuits, according to the CASC website. It designed the central processing unit for Long March 5 rockets and developed computer systems used in moon and Mars missions. The 772 Research Institute is a similar branch but located in Beijing. Also known as the Beijing Microelectronics Technology Institute, it develops military-grade electronic components, including chips. Also added to the list were two research institutes at the China Academy of Space Technology (CAST). The 502 Research Institute developed and made the Shenzhou 14 spacecraft, which sent three astronauts into space in June, and was involved in creating components for the BeiDou global satellite navigation system. The 513 Research Institute, based in Yantai, Shandong province, researches and develops chips and computer systems used in satellites, according to a post on its WeChat account. It also develops remote sensing and encryption technology for defence applications. China semiconductor group warns new US Chips law may lead to supply chain chaos A pair of institutes under the China Electronics Technology Group Corporation (CETC) were also added to the list. The CETC’s 43 Research Institute operates labs for testing microchips and electronic components in Anhui province and is recruiting postgraduate students who have studied integrated circuit design and microelectronics, according to its official WeChat account. The 58 Research Institute in Beijing is engaged in chip research and production for national defence, industry and government organisations. US maintains Trump-era tariffs on Chinese imports despite Biden ambivalence Zhuhai Orbita Control Systems, the only newly listed entity not directly owned by the Chinese central government, designs integrated circuits and develops artificial intelligence for satellites and space exploration. The company is under the southern city of Zhuhai’s agency for overseeing state-owned assets. American export regulations have restricted a slew of Chinese companies from accessing key US technologies, including military goods and dual-use items with both national defence and civilian applications.