Tech trade sanctions: US blocks Chinese, Pakistani companies over military ties

The US added over two dozen entities in Pakistan, China and the United Arab Emirates (UAE) to its trade blacklist which means that these companies will now be prohibited from obtaining US goods and technology without government approval, a report has said.

According to news agency AFP, the 26 entities – including nine entities from Pakistan, six from China and 3 from UAE – are said to have violated export controls by allegedly being involved in weapons and drone development programs in Pakistan and Iran, as well as supporting Russia amid its war with Ukraine.

The Commerce Department has accused these entities of violating export controls, participating in " weapons programs of concern," or evading US sanctions on Russia and Iran.

“We remain vigilant in protecting US national security from bad actors. Today’s actions send a clear message to those who violate our controls: they will face consequences,” said Alan Estevez, Under Secretary of Commerce for Industry and Security, in a statement

Nine Pakistani entities accused of being front agents of banned companies
The AFP report says that nine entities in Pakistan have been accused of acting as front companies and procurement agents for the previously blacklisted Advanced Engineering Research Organization . Since 2010, this group has allegedly acquired US-origin goods by concealing their true end users, including a Pakistani entity linked to the country’s cruise missile and drone programs.

“This conduct undermines the national security and foreign policy interests of the United States,” the Commerce Department stated.

Similarly, six entities in China have been blacklisted for allegedly obtaining US products to advance China’s military modernisation. Additionally, three entities in the UAE and one in Egypt were accused of trying to procure US components to bypass sanctions imposed.

Canada-based tech company removed from list
The Commerce Department also announced the removal of Canada-based Sandvine from the entity list. The company had been blacklisted in February 2024 after its technology was used for alleged mass web monitoring, censorship and targeting of human rights activists. Sandvine was removed after it took steps to prevent further misuse of its technology.