Biden Beats Trump's Record: Blacklists More Chinese Entities Than Ex-President

In a significant move that underscores the escalating economic tensions between the United States and China, the Joe Biden administration has now blacklisted a record number of Chinese companies.

What Happened: The Biden administration has set a new precedent by blacklisting an unprecedented number of Chinese entities, signaling a further intensification of the ongoing economic standoff between the two superpowers, Bloomberg reported on Friday.

The Commerce Department recently added six more Chinese firms to the U.S. export blacklist, bringing the total to 319 under Biden’s leadership. This figure surpasses the 306 entities blacklisted during the tenure of Donald Trump, a period marked by a significant trade war with China.

The current administration is leveraging economic sanctions to address foreign policy goals, particularly aiming to curb China’s technological and military advancements. The bipartisan consensus on adopting a tough stance towards China is evident, especially with the U.S. elections on the horizon.

While maintaining the tariffs introduced by the Trump administration, the Biden administration has quietly surpassed Trump’s blacklisting record and continues to use the entity list as a tool for imposing national security sanctions.

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China’s response has been to denounce these measures as economic coercion, with spokesperson He Yadong urging the U.S. to stop suppressing Chinese companies. In a symbolic retaliation, China sanctioned two U.S. defense contractors.

The entities on the U.S. list, which rarely see removal, face significant barriers to future U.S. exports, particularly those that could contribute to China’s military modernization. Some of the newly blacklisted firms are also implicated in supporting Russian military procurement and assisting Iran’s unmanned aerial vehicle components procurement.

Experts, including Alfredo Montufar-Helu, have expressed concerns that the U.S. strategy of “small yard, high fence” could be indicative of a broader scope of restrictions than initially suggested by U.S. officials.

Why It Matters: The Biden administration’s aggressive blacklisting strategy is part of a broader geopolitical struggle with China, which has significant implications for global markets and industries. Recent talks between President Biden and China’s President Xi Jinping have highlighted tensions over technology and Taiwan.

Moreover, the blacklisting comes amid concerns, as Goldman Sachs cautioned, that Trump’s proposed China tariff plan could slow U.S. economic growth and fuel inflation. Additionally, Biden and Treasury Secretary Janet Yellen have warned that China might flood the market with solar panels and EVs, as the global auto market, including players like Tesla Inc. and BYD Auto Co. Ltd., experiences a shift in dominance.

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