The war of artificial intelligence and chip giants: the US blacklists over 50 Chinese companies!
The US added dozens of Chinese technology companies to an export blacklist on Tuesday in its first such effort under the Donald Trump administration, as it doubles down on Beijing's artificial intelligence and advanced computing capabilities. The US Commerce Department's Bureau of Industry and Security added 80 organizations to an " entity list", with more than 50 from China, barring American companies from supplying those on the list without government permission.
The companies were blacklisted for allegedly acting contrary to US national security and foreign policy interests, the agency said, as part of its efforts to further restrict Beijing's access to exascale computing technology, which can process large amounts of data at very high speeds, as well as quantum technologies.
Dozens of Chinese entities were targeted for their alleged involvement in developing advanced artificial intelligence, supercomputers and high-performance artificial intelligence chips for military purposes, the Commerce Department said, adding that two firms were supplying sanctioned entities such as Huawei and its affiliated chipmaker HiSilicon.
He blacklisted 27 Chinese entities for purchasing US-origin items to support China's military modernization and seven firms for helping advance China's quantum technology capabilities.
Among the organizations on the " entity list " were six branches of Chinese cloud computing firm Inspur Group, which was blacklisted by the Joe Biden administration in 2023. China's Foreign Ministry said late Wednesday it "strongly condemns" the export restrictions while calling on the U.S. to "stop generalizing national security," Reuters reported.
The latest additions " cast an ever-widening net targeting third countries, transit points and intermediaries ," said Alex Capri, a senior lecturer at the National University of Singapore and author of "Techno-Nationalism: How It's Reshaping Trade, Geopolitics and Society."
Chinese firms have managed to gain access to strategic US dual-use technologies through third parties, he said, referring to loopholes that have allowed Chinese companies access to US technologies despite restrictions.
“ U.S. officials will continue to increase their search and seizure operations targeting the smuggling of advanced semiconductors made by Nvidia and Advanced Micro Devices,” he said. The expanded export restrictions come at a time when tensions between Washington and Beijing have been rising with the Trump administration increasing tariffs against China.
The rapid growth of Chinese artificial intelligence startup DeepSeek has fueled the adoption of low-cost, open-source artificial intelligence models in China, putting pressure on major American competitors with higher-cost proprietary models.
The Biden administration imposed sweeping export controls against China, covering everything from semiconductors to supercomputers, under the so-called “small yard, high fence” policy. The approach aims to impose restrictions on a small number of technologies with significant military potential while maintaining normal economic exchange in other areas.
Undersecretary of Commerce for Industry and Security Jeffrey I. Kessler said the agency was sending a clear and resounding message that the Trump administration will prevent American technologies from being " misused for high-performance computers, hypersonic missiles, military aircraft training, and UAVs (unmanned aerial vehicles) that threaten our national security."
" The Entity List is one of many powerful tools we have at our disposal to identify and disrupt foreign adversaries who seek to exploit American technology for malicious purposes, " he added.
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