U.S. Blacklists 35+ Chinese Tech Firms—Including Company that Sold Surveillance Tech to Iran

The Commerce Department this morning added 36 Chinese companies to its export blacklist, a decision that specifically targets firms involved in Beijing’s development of hypersonic weapons, human rights abuses, and other activities linked to the Chinese military.

The addition of one of those companies, Tiandy Technologies Co., followed a think tank report and a push by Senator Marco Rubio (R., Fla.) earlier this month, over its alleged role in the Chinese Communist Party’s genocide of Uyghurs and sales of surveillance tech to the Iranian security services and military. Until today, Tiandy was subject to no U.S. government restrictions at all.

“For too long, companies like Tiandy have operated with impunity,” the report, which was authored by Foundation for Defense of Democracies senior China Fellow Craig Singleton, stated. “Action against Tiandy would send a clear message that Washington takes Chinese techno-authoritarianism seriously and will hold accountable those who facilitate Beijing and Tehran’s abuses.”

Rubio followed up the report with a letter to Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo, and Treasury Secretary Janet Yellen, to demand that they determine whether U.S. government restrictions should apply.

Today’s decision bars Americans from selling to Tiandy, which is significant because Intel was one of its corporate partners. However, the U.S. semiconductor firm appears to have removed all mentions of Tiandy from its website since Commerce announced the move.

There’s still more that the U.S. can do, Singleton said: “The Treasury Department, working with partners in Canada and the United Kingdom, should also strongly consider applying Magnitsky sanctions against Tiandy and its owner–in what would amount to a first-ever use of such authorities against a Chinese technology company.” That would subject the firm to asset freezes and bar Americans from interacting with Tiandy in any capacity.

In addition to Tiandy, Commerce added Chinese-military-linked chip maker YMTC to its entity list today.

Commerce Department industry and security undersecretary Alan Estevez characterized today’s announcement as part of the Biden administration’s broader effort to counter the Chinese government’s efforts to use advanced technology for malign purposes. “This work will continue, as will our efforts to detect and disrupt Russia’s efforts to obtain necessary items and technologies and other items for its brutal war against Ukraine, including from Iran,” he said.