Blaming DJI and seven other tech firms for supporting "the biometric surveillance and tracking" of Uighurs, the US Treasury Department added them to a list of entities suspected of having Chinese military links, barring Americans from trading in their securities.
Separately, the Commerce Department added China's Academy of Military Medical Sciences and its 11 research institutes to a trade blacklist, restricting access to US exports. It said such aid included "purported brain-control weaponry" without defining the technology further.
The department also added HMN International, formerly Huawei Marine, Jiangsu Hengtong Marine Cable Systems, Jiangsu Hengtong OpticElectric, Shanghai Aoshi Control Technology Co, Ltd, and Zhongtian Technology Submarine Cable to the list over U.S. allegations of acquiring, or attempting to acquire, technology from the United States to help modernize the People's Liberation Army.
The Chinese embassy in Washington called the actions "unwarranted suppression" that violated free trade rules, adding that Beijing would take "all essential measures" to uphold the interests of Chinese companies and research institutions.
"China's development of biotechnology has always been for the well-being of mankind. The relevant claims of the US side are totally groundless," embassy spokesman Liu Pengyu said in an email.
UN experts and rights groups estimate that more than a million people, mainly Uighurs and members of other Muslim minorities, have been detained in recent years in a vast system of camps in China's far-west region of Xinjiang.
China denies rights abuses in Xinjiang and has pushed back against US "interference" in its affairs, vowing to protect its companies against US sanctions.
Commerce Secretary Gina Raimondo said China is choosing to use biotechnologies "to pursue control over its people and its repression of members of ethnic and religious minority groups".
"We cannot allow US commodities, technologies, and software that support medical science and biotechnical innovation to be diverted toward uses contrary to US national security," she said in a statement.
Thursday's announcement coupled with last week's investment ban on Chinese facial recognition company SenseTime could worsen already rocky relations between Beijing and Washington, despite President Joe Biden's effort in a November virtual meeting with China's leader Xi Jinping to establish "guardrails" to prevent the two superpowers from sliding toward conflict.
Also on Thursday, the Senate passed the Uighur Forced Labor Prevention Act. Biden has said he will sign it into law. The bill would ban imports from China's Xinjiang region over concerns about forced labour.
