The United States of America, in its most recent Entity List under the Export Administration Regulation (EAR), has added 37 quantum research organizations from China restricting them from gaining access to resources from the US. Of the 37 organizations, 22 are China’s top firms within the quantum technology ecosystem.

37 Chinese quantum research organizations added to ‘trade restrictions’ Entity List in the US

The major reason for restricting these quantum computing research organizations to American resources is their involvement in quantum research or the spy balloon incident of Chinese origin. The report from the World Street Journal on the balloon incident had it that the balloon that was floated in the US had American-made equipment for capturing photos, videos, and radar data, solar panels for power generation, and satellite devices. 

Although China reported that the balloons were merely for ‘weather observation’, the report stated that investigations from several US defense agencies like the Federal Bureau of Intelligence (FBI) stated otherwise citing the availability of Chinese sensors for data transmission. It has been discovered that 11 Chinese entities from the restricted entities were involved in the China spy balloon incident. This has further threatened the security of the US hence the resolve for restrictions.

Quantum Computing Tech Stolen For Unmanned Systems

Also, 4 entities allegedly sourced quantum computing from the US for use in unmanned military aerial systems. The US Commerce Department has stated concerns about China having access to quantum computing technology from the US leading to further research by China on the subject especially in military applications. Gina Raimondo, the US Commerce Secretary said to Congress that while the discussions of national security today are based on war equipment such as guns, missiles, fighter jets, and tanks, the ones of the near future will be on semiconductors, AI models, quantum computing, and so on.

He added that China cannot be allowed to have access to US technology for its military since there is already a cold economic war between the two countries. Gina stated in an address to Congress that the goal of the Commerce Department is to continuously study these dual-use quantum technologies to ascertain what the US has currently, what China has, and see that China cannot access technology from the US for their military.

Disruptive Technology Strike Force Saves The Day

The addition of these organizations to the Entity List was made possible due to the swift action of the Disruptive Technology Strike Force, a joint task force between the Commerce Department and the Department of Justice established in 2023. Since then, the Strike Force has charged 14 cases involving alleged sanctions and export violations and likely aided in arresting two Chinese nationals accused of the same charges last month. 

Matthew S. Axelrod, Assistant Secretary in the Commerce Department's Bureau of Industry and Security, said that in keeping with the protection of US advanced technology from misappropriation, the Entity List is a key tool. Matthew also opined that the prevention of the acquisition of technologies that will enable the People’s Republic of China to build quantum, drone, and high-altitude surveillance programs is critical to protecting US national security.

According to Reuters, the Chinese embassy in Washington called the move "blatant economic coercion and bullying in the field of technology," and said China would resolutely safeguard the lawful rights of Chinese firms and institutions.