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China's Spy Balloon Could Result in More US Sanctions for Chinese Companies

The US government is currently 'exploring taking action' against any companies the FBI investigation discovers are linked to the balloon.

 & Matthew Humphries Former Senior Editor

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Regardless of how and why a Chinese balloon ended up floating over the US, the incident could result in more sanctions being targeted at China.

As The Register reports, in a press briefing yesterday, US Department of State spokesperson Ned Price responded to a question about China not being truthful about the function of the balloon and if countermeasures/sanctions were being considered. Price said:

"We’re exploring taking action against PRC entities linked to the PLA that supported the balloon’s incursion into U.S. airspace. We’ll look at continuing these broader efforts to expose and to address the PRC’s larger surveillance activities that pose a threat to our national security and that to our allies and partners as well."

The FBI is the lead governing agency for the forensic examination of the balloon, which was shot down by the US military on Feb. 5. For now, the majority of the balloon's payload remains underwater off the coast of South Carolina, which the US Navy and Coast Guard are hoping to rectify. Once recovered, an FBI Laboratory in Quantico, Virginia will remove salt water from the "evidence" before it's processed. Top of the list of questions we would all like answering is, of course, what the balloon's real function was?

Based on Price's comments, any companies that have components contained in the payload are likely going to face sanctions of some kind. Although the majority of the components will probably be Chinese, there's a chance a few US companies could be embarrassed by this incident. China may be concerned if the payload contains one of its new Loongson chips.

About Our Expert

Matthew Humphries

Matthew Humphries

Former Senior Editor

My Experience

I started working at PCMag in November 2016, covering all areas of technology and video game news. Before that I spent nearly 15 years working at Geek.com as a writer and editor. I also spent the first six years after leaving university as a professional game designer working with Disney, Games Workshop, 20th Century Fox, and Vivendi.

I hold two degrees: a Bachelor's degree in Computer Science and a Master's degree in Games Development. My first book, Make Your Own Pixel Art, is available from all good book shops.

My Areas of Expertise

  • PC components and system building
  • Raspberry Pi
  • Software development
  • Storage technology
  • Video games and gaming hardware

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