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The United States blacklisted six Chinese entities for their links to China's aerospace programs.
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The blacklisting is part of the US retaliation over an alleged Chinese spy balloon that traversed US airspace.
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The move makes it more difficult for the entities to obtain American technology exports.
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The US-China diplomatic row has escalated due to the balloon incident.
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The US Secretary of State canceled a trip to Beijing due to the incident.
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The six entities are being targeted for supporting China's military modernization and aerospace programs, specifically the People's Liberation Army (PLA).
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The PLA is using high altitude balloons for intelligence and reconnaissance activities.
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The US Department of Commerce will continue to use restrictions and enforcement tools to protect US national security and sovereignty.
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The six entities include Beijing Nanjiang Aerospace Technology, China Electronics Technology Group Corporation 48th Research Institute, and others.
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The recent twin incidents reflect increased concerns over China's surveillance program and pressure on President Biden to take a tough stand against it.