US Expands Export Blacklist, Targeting Chinese AI and Computing Capabilities

21 Sources

The US has added 80 entities to its export blacklist, primarily targeting Chinese companies involved in AI, quantum computing, and advanced technology development for military purposes.

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US Expands Export Blacklist to Curb China's Tech Advancements

The United States has significantly expanded its export blacklist, adding 80 new entities to the Bureau of Industry and Security's (BIS) Entity List. This move, announced by the US Department of Commerce, is aimed at preventing China from acquiring advanced computing technology for military purposes 12.

Key Targets and Motivations

The expansion primarily focuses on Chinese organizations, with over 50 of the new additions based in China. Other entities added to the list are located in Iran, Taiwan, Pakistan, South Africa, and the United Arab Emirates 1. The US government's primary concerns include:

  1. High-performance computing capabilities
  2. Quantum technologies
  3. Advanced artificial intelligence
  4. Hypersonic weapons development 12

Notable Additions to the Entity List

Several prominent Chinese companies and institutions have been targeted:

  1. Six Inspur subsidiaries, including Inspur Taiwan and Inspur Software 2
  2. Beijing Academy of Artificial Intelligence and Beijing Innovation Wisdom Technology 24
  3. Henan Dingxin Information Industry, Nettrix Information Industry, Suma Technology, and Suma-USI Electronics 24

Closing Loopholes and Subsidiary Restrictions

A significant aspect of this expansion is the closure of loopholes that previously allowed subsidiaries to bypass sanctions:

  1. Inspur subsidiaries were added to prevent circumvention of 2023 sanctions against the parent company 24
  2. Nettrix, an offshoot of previously blacklisted Sugon, was included to prevent continued collaboration with US tech giants 3

Impact on US Technology Companies

The new restrictions are likely to affect American tech businesses that have been working with these entities:

  1. Companies like Nvidia, Intel, and Microsoft may need to reassess their partnerships 23
  2. Hewlett Packard Enterprise has already initiated legal action against Inspur Group for alleged patent infringements and sanctions violations 2

Government Statements and Justifications

US officials have emphasized the importance of these measures:

  1. Commerce Secretary Howard Lutnick stated, "We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives" 34
  2. Under Secretary of Commerce Jeffrey I. Kessler highlighted the need to safeguard national security by preventing misuse of US technologies 2

Broader Context and Implications

This expansion of the Entity List is part of a larger trend in US-China relations:

  1. It follows the Biden administration's "small yard, high fence" policy on export controls 4
  2. The move comes amid rising tensions between Washington and Beijing, including ongoing trade disputes 5
  3. The restrictions aim to slow China's progress in key technological areas, particularly those with military applications 145

As the US continues to tighten its grip on technology exports, the global tech industry may face further challenges in navigating the complex landscape of international trade and national security concerns.

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