The case of the supposed Chinese spy balloon shot down by the United States continues to give people something to talk about. And although Joe Biden, the US president, assured that the situation has not worsened the already tense relationship between his country and the Asian giant, everything indicates that the White House is preparing sanctions for the companies involved in the event.
Bloomberg reports that the authorities will be blacklisted for exports to all companies in China that are linked to the apparent espionage program on US territory. The measure has not yet been officially announced, but it could be announced today, indicates the aforementioned media.
The wreckage of the suspected Chinese spy balloon was recovered this week after it was shot down by an F-22 Raptor near South Carolina. The rescue was in charge of the United States Navy, since the device fell about 10 kilometers from the coast. Subsequently, the equipment was processed by special agents of the FBI, pending an in-depth analysis of its characteristics.
While details of possible sanctions are scant or non-existent, it would not be uncommon for the United States to blacklist those companies. who have manufactured — or supplied — the components used in the instrumentation of the stratospheric balloon. As long as they are not companies that are already included in the North American registry, of course.
Beyond the statements of the US president, the events involving the alleged Chinese spy balloon have upset internal and external spirits. The authorities of the Asian giant maintained from the beginning that it was a weather balloon that had gone off course due to the winds. Something that the Pentagon emphatically denied, but without providing more details about it.
While the Biden administration has been harshly criticized by the Republican political arc for allowing the balloon to roam over American lands for several days before knocking him down. Especially since it flew over the northern region of the United States, where the launch silos for the Minuteman III intercontinental ballistic missiles are located.
The case of the Chinese spy balloon would lead to new trade sanctions
If the sanctions against companies linked to the case of the alleged Chinese spy balloon are confirmed, it will be necessary to see what kind of response comes from Asia. Karine Jean-Pierre, White House press secretary, said that they are “exploring action against the entities of the People’s Republic of China linked to the People’s Liberation Army that supported the incursion of the balloon into United States airspace.” However, she declined to provide further details.
If it comes to fruition, it will not be the first time that the Americans have blacklisted companies from the Asian giant, of course. But what is striking about this case is how the events surrounding the alleged Chinese spy balloon have taken place, and its consequences. Likewise, let us take into account that, regardless of the punishment itself on the signatures entered into that registry, the consequences extend to US companies that routinely do business with them.
What the blacklist does is, basically, impose a blockade on exports to sanctioned companies. Something that can only be remedied if the US government issues special licenses, which always force concessions. Last year, for example, NVIDIA and AMD had to stop selling their most advanced GPUs to China for fear they would be used militarily.