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U.S. Blacklists Over 50 Chinese Firms to Stop Beijing’s AI and Chip Advancements

U.S. Blacklists Over 50 Chinese Firms to Stop Beijing’s AI and Chip Advancements
 

The United States has added over 50 Chinese companies to its export blacklist in a move aimed at restricting China’s progress in artificial intelligence (AI) and advanced computing technologies. This marks the latest escalation in the geopolitical and technological tensions between Washington and Beijing.

The blacklist, issued by the U.S. Department of Commerce’s Bureau of Industry and Security, consists of 80 organizations, with more than 50 of them based in China. U.S. companies are now prohibited from supplying goods and services to these entities without obtaining special government permits. The Commerce Department cited concerns over national security and alleged that these companies were aiding China’s military modernization efforts and foreign policy strategies.

 

Targeting Advanced Technologies

The blacklisted companies are accused of acquiring U.S.-origin technologies to support China’s development of exascale computing, quantum technologies, and high-performance AI chips. These technologies are critical for processing massive amounts of data at unprecedented speeds, which can be used for both civilian and military purposes.

According to the Commerce Department, 27 of the blacklisted entities allegedly supported China’s military modernization, while seven others were involved in advancing quantum technology capabilities. Among the listed companies are six subsidiaries of Inspur Group, a Chinese cloud-computing firm previously sanctioned by the Biden administration in 2023.

Additionally, two firms were identified for supplying technology to Huawei and its chipmaking affiliate, HiSilicon, both of which have been under scrutiny for their alleged ties to China’s military and intelligence apparatus.

 

Rising Tensions Between the U.S. and China

This move comes at a time of heightened tensions between the U.S. and China. The Trump administration had previously imposed tariffs on Chinese imports, and the Biden administration continued to implement sweeping export controls targeting semiconductors, supercomputers, and other technologies under its “small yard, high fence” policy. This policy aims to restrict access to a narrow range of sensitive technologies with military potential while maintaining normal economic exchanges in less critical areas.

The Commerce Department emphasized that the blacklist sends “a clear, resounding message” that the U.S. will prevent its technologies from being used in applications such as hypersonic missiles, UAVs (unmanned aerial vehicles), and military aircraft training.

 

China’s Response

China’s foreign ministry has strongly condemned the blacklist, accusing the U.S. of “weaponizing trade and technology” while urging Washington to stop “generalizing national security concerns.” Beijing has also criticized the U.S. for targeting third-party countries and intermediaries as part of its export restrictions.

Alex Capri, a senior lecturer at the National University of Singapore and author of Techno-Nationalism: How It’s Reshaping Trade, Geopolitics, and Society, noted that Chinese companies often gain access to U.S. technologies through loopholes and third-party channels. “U.S. officials will continue to step up tracking and tracing operations aimed at the smuggling of advanced semiconductors made by Nvidia and AMD,” Capri said.

 

Implications for the Tech Industry

The restrictions are expected to have far-reaching implications for the global technology sector. Chinese AI startups, such as DeepSeek, have been leveraging open-source, low-cost AI models to compete with their U.S. counterparts, which rely on proprietary, high-cost solutions. The blacklist could further intensify competition between Chinese and American tech firms while disrupting supply chains for critical computing components.

 
 


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