US Expands Trade Blacklist, Targeting AI and Military Tech Links
WASHINGTON: The United States has added 80 entities to its trade blacklist, aiming to curb advancements in artificial intelligence and high-performance computing, particularly in China. The move, announced by the Commerce Department, affects companies from multiple countries, including China, Taiwan, Pakistan, the UAE, Iran, and South Africa.
The listed entities face restrictions on acquiring American technology without special government approval due to activities deemed a threat to US national security and foreign policy.
Crackdown on Military Tech Usage
US Commerce Secretary Howard Lutnick emphasized that Washington will not permit adversaries to exploit American technology for military advancements. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” Lutnick stated.
Among the affected companies are six subsidiaries of Inspur Group, a leading Chinese cloud computing firm. The US alleges these units have contributed to the development of supercomputers used by China’s military. Other targeted firms include Nettrix Information Industry Co, Suma Technology Co, and Suma-USI Electronics, which reportedly supported the creation of Chinese exa-scale supercomputers capable of handling vast amounts of data and large-scale simulations.
China’s Response and Retaliation Threats
Beijing strongly condemned the US decision, accusing Washington of misusing trade and technology as political weapons. Chinese Foreign Ministry spokesperson Guo Jiakun urged the US to halt the “unjust suppression” of Chinese firms, warning that China would take “necessary measures” to protect its businesses.
Similarly, the Chinese embassy in Washington criticized the move, calling it an attempt to “politicize, instrumentalize, and weaponize trade and technology issues under the guise of military concerns.”
Impact on Global Tech and AI Development
US officials stated that the decision aims to prevent American technology from enhancing China’s hypersonic weapons program, military aircraft training, and drone capabilities. Jeffrey Kessler, a senior US commerce official, noted that restrictions will also impede China’s progress in quantum computing and AI-related defense projects.
Inspur Group had previously been placed on the US Entity List in 2023, leading to scrutiny over its ties with major US chipmakers like AMD and Nvidia. While it remains unclear whether these firms continue to supply Inspur’s subsidiaries, Nvidia declined to comment, and AMD has yet to respond.
The expanded restrictions signal Washington’s commitment to countering China’s technological advancements, even as tensions between the two nations continue to escalate over trade, security, and AI competition.
