The United States has added dozens of Chinese technology companies to an export blacklist in an effort to limit Beijing's artificial intelligence (AI) and advanced computing capabilities, and has doubled the pace of work to reduce China's artificial intelligence capabilities.
The U.S. Department of Commerce's Bureau of Industry and Security has added 80 companies, more than 50 of which are from China, to an export blacklist, prohibiting American companies from supplying these companies without government permission.
The US Bureau of Industry and Security said the companies were blacklisted for allegedly acting against US national security and foreign policy interests, part of Beijing's efforts to further restrict access to exascale computing technology, which can process large amounts of data at very high speeds, as well as quantum technologies.
The U.S. Department of Commerce says dozens of Chinese companies have been targeted for their alleged involvement in the development of advanced artificial intelligence, supercomputers and high-performance artificial intelligence chips for military purposes. Two companies, Huawei and its affiliated chipmaker HiSilicon, have supplied materials to the sanctioned entities.
US authorities have blacklisted 27 Chinese entities for purchasing US goods to support China's military modernization and blacklisted 7 companies for helping China advance its quantum technology capabilities.
The sanctions list also includes 6 subsidiaries of Chinese cloud computing firm Insper Group, which was blacklisted by the Joe Biden administration in 2023.
China's Foreign Ministry strongly condemned the export restrictions and urged the US not to make public concerns about national security.
The latest addition to the blacklist is a growing trap for third countries, transit points and intermediaries, said Alex Capri, a senior lecturer and author at the National University of Singapore.
He cited legal loopholes that allow Chinese companies to access US technologies despite sanctions, and said that Chinese companies were able to access US strategic dual-use technologies through designated third parties.
US authorities will continue to intensify detection and tracing operations targeting the smuggling of advanced semiconductors manufactured by Nvidia.
The export restrictions come at a time when tensions are rising between Washington and Beijing due to the Trump administration's tariff hikes against China.
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The rapid growth of Chinese AI startup DeepSec has boosted the adoption of open-source, low-cost AI models in China, putting pressure on established American competitors with high-cost, proprietary models.
The Biden administration has imposed sweeping export controls against China, covering everything from semiconductors to supercomputers under the so-called "small yard, high fence" policy, an approach aimed at restricting a small number of technologies with significant military potential while maintaining normal economic exchanges in other areas.
“The U.S. agency is sending a clear and compelling message that the Trump administration will prevent the misuse of American technology for high-performance computing, hypersonic missiles, military aircraft training, and unmanned aerial vehicles (UAVs) that threaten our national security,” said Jeffrey I. Kessler, Under Secretary of Commerce for Industry and Security.
He added that the agency's list is one of many powerful tools we have to identify and deter foreign adversaries who seek to misuse American technology for malicious purposes.
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