China says U.S. blacklist move defies Xi-Biden pact

China has slammed the U.S. decision to add dozens of its companies to a trade blacklist, saying the move violated an understanding between leaders of the world’s two largest economies. 

“The U.S. Commerce Ministry publishing a new sanction list is not in line with the consensus agreed on by Chinese and U.S. leaders,” Chinese Commerce Ministry spokeswoman Shu Jueting said at a regular press briefing in Beijing on Thursday. 

“It is harmful to both countries, the global supply chain’s security and the global economic recovery,” she added.

The U.S. Commerce Department added about a dozen Chinese firms to the Entity List on Wednesday for engaging in activities contrary to national security or foreign policy interest. Suppliers will not be able to deal with companies on the list unless they’ve received a special license to do so.

President Joe Biden and Chinese leader Xi Jinping last week participated in their first face-to-face meeting, with both sides stressing the need for more talks between their governments. While they didn’t release a joint statement, the summit appeared to help stabilize a relationship marred by tensions over Taiwan, Xinjiang and punitive actions against companies like those announced on Wednesday. 

Three affiliates of Corad Technology Limited, a Chinese entity added to the Entity List in 2019, were included over sales of Western technology to North Korean front companies and subordinates of Chinese government and defense industry organizations, the U.S. Commerce Department said in a statement. 

Involvement in Chinese military quantum-computing applications was cited as a reason for being added to the list, while other Chinese and Pakistani entities were added for helping the latter’s nuclear and ballistic missile activities.

In total, 27 foreign groups and individuals were added to the list from countries including Japan and Singapore. Commerce Secretary Gina Raimondo said the list would prevent U.S. technologies being diverted to further China’s and Russia’s military advancement and Pakistan’s nuclear activities or ballistic missile program. 

Shu said the U.S. had “generalized” the concept of national security and “arbitrarily” rolled out sanctions without evidence. “China strongly protests this and will make solemn representations to the U.S.,” she added.

Chinese Foreign Ministry spokesman Zhao Lijian said Beijing reserved the right to “take necessary countermeasures” against the U.S., while calling on the Biden administration to “redress the mistake immediately.”

“The U.S. repeatedly overstretched the concept of national security and abused state power to oppress Chinese companies,” Zhao said.