US blacklists over 50 Chinese firms to restrict AI, chip development

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The United States has added more than 50 Chinese companies to its export blacklist, tightening restrictions on Beijing’s access to artificial intelligence and advanced computing technology.

The U.S. Department of Commerce’s Bureau of Industry and Security on Tuesday announced that it had blacklisted 80 organizations, with more than 50 of them from China.

This move prevents American companies from supplying technology to these firms without government approval.

According to the Commerce Department, the companies were blacklisted for helping China’s military modernization and advancing AI, supercomputers, and high-performance chips for military use.

“We are sending a clear, resounding message that the Trump administration will prevent U.S. technologies from being misused for high-performance computing, hypersonic missiles, military aircraft training, and UAVs (unmanned aerial vehicles) that threaten our national security,” said Jeffrey I. Kessler, Under Secretary of Commerce for Industry and Security.

The blacklist includes 27 companies accused of acquiring U.S. technology for China’s military and seven firms involved in quantum technology development. Among the affected companies are six subsidiaries of Inspur Group, a major Chinese cloud computing firm.

The move is part of a broader effort to limit China’s technological advancements, especially in AI and semiconductor production. The Trump administration has increased trade tariffs on China, adding to the already strained relations between the two countries.

Technology expert Alex Capri said the new restrictions are widening efforts to stop Chinese firms from bypassing U.S. export laws through third-party suppliers.

“Chinese firms have managed to gain access to U.S. strategic dual-use technologies via certain third parties,” Capri said. “Officials will continue to track and stop the illegal flow of advanced semiconductors from companies like Nvidia and Advanced Micro Devices.”

The Biden administration had already introduced strict export controls in 2023 to limit China’s semiconductor and supercomputer development. This policy, called “small yard, high fence”, focuses on restricting specific high-risk technologies while allowing trade in other economic areas.

Chinese tech giants, including Huawei and Inspur Group, have been heavily affected by these measures. However, Beijing has been working on building its own AI and semiconductor industry to reduce dependence on American technology.

One notable example is Chinese AI startup DeepSeek, which has developed low-cost AI models that challenge leading U.S. AI firms.

Neither Huawei nor Inspur Group has responded to requests for comment on the latest restrictions.

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