The US has added more than 50 Chinese technology companies to its export blacklist, aiming to limit China’s progress in AI and advanced computing. The move, announced by the US Department of Commerce’s Bureau of Industry and Security (BIS), is the first such action under the current Trump administration.
The BIS added 80 entities to its ‘Entity List’, with the majority based in China. The Commerce Department places firms on the Entity List due to issues related to national security or foreign policy. Transactions with these listed companies require businesses to secure licences, which are usually denied. In addition to Chinese companies, the list also features entities from the UAE, South Africa, Iran, and Taiwan.
“Under the strong leadership of President Donald Trump, the Commerce Department is taking decisive action to protect America,” said US Secretary of Commerce Howard Lutnick. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives. We are committed to using every tool at the Department’s disposal to ensure our most advanced technologies stay out of the hands of those who seek to harm Americans. At the same time, we will continue to drive American innovation, ensuring that our nation’s economic strength remains unparalleled.”
US tightens controls to curb China’s military expansion
With the new sanctions, the BIS aims to limit China’s access to exascale computing and quantum technologies, particularly for military use, and to obstruct the development of its hypersonic weapons programme.
The BIS listed 11 entities in China and one in Taiwan for their involvement in developing AI, supercomputers, and high-performance AI chips linked to China’s military sector. Another 13 Chinese companies were added due to their involvement in unsafeguarded nuclear activities.
Additionally, 27 Chinese entities were blacklisted for allegedly attempting to acquire US-origin items to support China’s military modernisation. A further seven China-based organisations were included for efforts to advance the country’s quantum technology sector, while two companies from China and Iran were listed for attempting to procure US-origin items for Iran’s defence and drone programmes. Seven entities were sanctioned for contributions to ballistic missile programmes.
BIS blacklisted two Chinese entities for selling products to parties already on the Entity List, including Huawei and affiliated entity HiSilicon. The latest action also includes 10 entities from China, South Africa, and the UAE due to their association with the Test Flying Academy of South Africa (TFASA), which was added to the Entity List in June 2023.
Among those blacklisted are six subsidiaries of Inspur Group, a Chinese cloud computing company previously sanctioned by the Joe Biden administration in 2023.
Recently, Malaysia announced plans to strengthen its control over semiconductor shipments, after US authorities urged to prevent unauthorised transfer of advanced chips to China.
Read more: US sanctions China’s Integrity Tech over cyber espionage campaigns
