China Sanctions US Compliance Firm, Limits Tech Exports

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China announced it will impose sanctions on a United States company and two individuals in reaction to similar measures taken by the U.S. against Chinese officials and entities.

The December 26 sanctions target Kharon, a U.S. intelligence data firm, its director of investigations Edmund Xu, and former researcher Nicole Morgret. These sanctions are a response to allegations and measures concerning the situation in the Xinjiang Uygur autonomous region.

The Chinese Foreign Ministry stated that Kharon and the individuals have been involved in collecting and providing sensitive information about Xinjiang. Consequently, China plans to freeze their assets within its jurisdiction and restrict their ability to engage in transactions and cooperation with Chinese entities and individuals. Additionally, Xu and Morgret will be barred from entering mainland China and its special administrative regions of Hong Kong and Macao.

This move follows a U.S. report and sanctions on Chinese officials and companies over issues in Xinjiang. China has expressed strong objections to what it perceives as U.S. interference in its internal affairs and has warned of further actions if the U.S. does not alter its approach.

The Chinese government also criticized the U.S.'s recent National Defense Authorization Act for Fiscal Year 2024, particularly its stance on Taiwan and the portrayal of China, urging the U.S. to abandon policies it views as detrimental to bilateral relations and cooperation.

Export Controls Announced

Last week China announced a ban on the export of technology to make rare earth magnets, Reuters reports, expanding an existing ban on the sale fo technology to extract and separate the metals.

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