The United States is expected on Friday to add Chinese firms connected to Beijing's suspected surveillance balloon program to an export blacklist, two sources familiar with the plans said.
Earlier this week the US had said it would explore taking action against entities connected to China's military that supported the flight of a Chinese spy balloon into US airspace last week.
Washington is confident the manufacturer of the Chinese balloon, shot down by the US military last weekend off the US East Coast, has a "direct relationship" with the People's Liberation Army (PLA).