USA sanctions five companies after balloon launch - one man is in focus

The Americans are in no doubt: the balloon that was shot down off the east coast of the United States last week is part of the Chinese regime's extensive surveillance program. "We know that these balloons are all part of a fleet of PRC balloons developed for surveillance purposes," the US State Department said in a statement.

Now the government of President Joe Biden has reacted and put five Chinese companies and a research institute on its sanctions list. They are said to be linked to Beijing's aerospace programs. It is now becoming almost impossible for companies to obtain technology exports from the USA. Because without an explicit special permit, local companies are no longer allowed to sell parts to the listed companies.

But who are these companies? The focus is on one man in particular: the Chinese aeronautical scientist Wu Zhe. A company he founded, the Eagles Men Aviation Science and Technology Group, is on the sanctions list. The high-ranking scientist has played a key role in promoting Chinese ambitions in near-space in recent years.

He was not only vice president of the Aerospace University in Beijing. According to his biography on his website, Wu was also said to have been a member of an advisory committee for the General Armaments Department of the People's Liberation Army. He also contributed to the development of jet fighters and stealth technology.

The Americans are likely to look primarily to Wu's experience with airships: just under four years ago, a team led by him brought an airship to a height of more than 20,000 kilometers and let it sail around the world - too over North America.

At least that's how the report of a Chinese news agency from 2019, which the "New York Times" discovered on Monday evening, describes it. Wu described the project as a milestone on the way to populating the upper reaches of the Earth's atmosphere with steerable balloons. According to the entrepreneur, they should be able to be used for early warning of natural disasters and for surveillance from the air.

Within a few days, the US military shoots four flying objects out of the sky: first a suspected espionage balloon from China, then three other suspicious flying objects. The military did not want to rule out a connection with extraterrestrials.

Source: WORLD | Peter Haentjes

Even then, the development team described the advantages of such flying objects: Compared to satellites, they are closer to the ground, can carry larger loads and achieve a higher resolution. A few years ago, the company Wu founded, Eagles Men Aviation Science and Technology, is said to have filed a patent for a technology that can be used to strengthen the walls of airships.

A wholly owned subsidiary specializing in chemical products is also on the sanctions list. In addition, according to media reports, Wu is said to have helped found "Beijing Nanjiang Aerospace Technology" together with a Shanghai real estate company. According to the company, it has focused on "near-space" technologies - and is also affected by US sanctions.

Also on the list is a research institute of the China Electronics Technology Group (CETC), which specializes in microelectronics and solar cells for probes and spacecraft. The CETC, in turn, is a Chinese state-owned mega-corporation that develops communications and data processing technology. The company emerged more than 20 years ago from dozens of research institutes that were subordinate to the then Ministry of Information Industry. The CETC reportedly employed around 170,000 people in 2020.

A "Guangzhou Tian-Hai-Xiang Aviation Technology" is also on the list. The company was originally founded by the Chinese military to develop "vehicle-based unmanned reconnaissance aircraft," according to the company's website. Today, the company specializes primarily in surveillance drones, which military veteran Li Yuzhuang had restructured to do.

Tian-Hai-Xiang boasts that the company was the first in the domestic drone industry to outfit Chinese military troops. The "Dongguan Lingkong Remote Sensing Technology" is also one of the sanctioned companies. It is researching a technology that will enable aircraft to recognize what is happening on the ground from a great height.

The US Department of Commerce did not explain whether the listed companies and the institute played a direct role in the development of the balloon. However, President Biden's administration said it would consider taking action against any company that supported the balloon flight.

For the fourth time in a few days, the US military shoots down a flying object. So far it is unclear whether there is a connection to the alleged Chinese spy balloon. "The excuse that you didn't want to spy doesn't stand up to reality," says Alexander Görlach, in New York.

Source: WORLD

US Assistant Secretary of Commerce Don Graves tweeted that his department "will not hesitate to use such restrictions and other regulatory tools to protect US national security and sovereignty." The individual components of the balloon are currently being examined. According to US authorities, however, the flying object was equipped with a number of surveillance devices, including antennas and sensors for intercepting communications and solar systems for electricity operation.

And so the question now arises as to where the high-tech parts come from. The US members of Congress are said to have already been informed that individual components contained English labels. Republican senators, such as Dan Sullivan from Alaska, now want to clarify whether American companies also indirectly helped China to build the spy balloon.

The communist regime in Beijing, on the other hand, claims that the balloon that was shot down was a civilian airship used for meteorological investigations. China immediately made serious accusations against the Americans on Monday. The United States has also flown high-altitude balloons over Chinese airspace on more than 10 occasions since last year. The US government then dismissed the claim as "completely false".

"Everything on shares" is the daily stock exchange shot from the WELT business editorial team. Every morning from 5 a.m. with the financial journalists from WELT. For stock market experts and beginners. Subscribe to the podcast on Spotify, Apple Podcast, Amazon Music and Deezer. Or directly via RSS feed.