WASHINGTON—China risks losing even more access to Western technology after a suspected spy balloon traversed the U.S., as Washington and its allies consider punishing Beijing with stiffer restrictions on products it needs to advance its military and economic might.
Current and former security officials say the balloon, which the U.S. said carried antennas and sensors for collecting intelligence and communications, underscores the national security threat posed by China and will build political support for stronger protections of U.S. technology.
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