AI, cloud companies among 50 China entities in US export blacklist
The Commerce Department's Bureau of Industry and Security added roughly 80 companies to the "entity list," including those from Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates. Six of these companies are subsidiaries of the Inspur Group, China's top cloud computing and big data service provider, which was listed in the US government's entity list in 2023.
Bangkok: Beijing protested Wednesday after the US added dozens of companies to its export control list, including more than 50 based in China that it says sought advanced knowhow in supercomputing, artificial intelligence, and quantum technology for military purposes.
Companies Added to the List
Companies from Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates were also included in the roughly 80 companies added to the entity list of the Commerce Department's Bureau of Industry and Security (BIS). Six are subsidiaries of the Inspur Group, China's leading cloud computing and big data service provider which was listed in the US government's entity list in 2023.
The update also includes the Beijing Academy of Artificial Intelligence (BAAI), which objected vehemently. The institute stated, "We are shocked that a private non-profit scientific research institution has been added to the entity list. We strongly oppose this wrong decision without any factual basis and ask the relevant US departments to withdraw it."
China's Response
A review committee said the BAAI and a firm, Beijing Innovation Wisdom Technology Co, were judged to have developed large AI models and advanced computer chips for military purposes. China's foreign ministry also lashed back, saying the entity list and other export controls were an abuse meant to unjustly suppress Chinese enterprises.
The ministry spokesperson, Guo Jiakun, said at a routine news briefing Wednesday, "It seriously violates international law and basic norms of international relations, severely damages the legitimate rights and interests of enterprises, and undermines the security and stability of global supply chains. China firmly opposes and strongly condemns this."
Purpose of Control Measures
The aim is to restrict China's capacity to acquire and develop ultra-fast, or exascale supercomputers, to develop hypersonic weapons, and other sensitive technologies. The notice on the BIS website added that the bureau intends to prevent South Africa's Test Flying Academy from using US goods to train Chinese troops, disrupt Iran's access to drones and other military items, and hinder the development of insecure nuclear and ballistic missile programs.
The companies on the list are subject to the foreign direct product rule of the BIS, which allows it to control reexports and transfers of foreign-made products containing technology that the US government deems vital for national security.
Trade War Escalation
The tightening of controls comes as the Trump administration prepares for another round of tariff hikes due next week, an escalation of the trade war that President Donald Trump launched during his first term in office. Trump has already hiked tariffs on imports of Chinese goods to 20%.
On Monday, he said he would slap a 25% tariff on all imports from nations that buy oil or gas from Venezuela. China buys a large share of the oil exported by Venezuela. China has retaliated with its own countermeasures, including sweeping new duties on a variety of American goods and an anti-monopoly investigation into Google.
It has also moved to tighten its own sanctions regime, meanwhile, with a law enabling it to freeze assets of companies subject to Chinese sanctions.