The US blacklists over 50 Chinese companies, tightening restrictions on Beijing’s access to artificial intelligence and advanced semiconductor technologies. The move, announced on Tuesday, is the latest effort to curb China’s rapid advancements in AI and computing, which US officials believe could be leveraged for military and strategic dominance.

The US Department of Commerce’s Bureau of Industry and Security (BIS) added 80 organizations to its export blacklist, including over 50 Chinese firms. Companies on this “entity list” are barred from receiving US technology without government approval, effectively cutting them off from crucial AI, semiconductor, and quantum computing supplies.

US Tightens Control on AI and Exascale Computing

According to the Commerce Department, these restrictions aim to prevent China from acquiring cutting-edge AI chips, exascale computing technology, and quantum advancements that could bolster its military capabilities. Some of the blacklisted companies were identified as suppliers to Huawei and its chipmaking subsidiary HiSilicon, both of which have been under US sanctions for years.

Key targets of the ban include:

• 27 Chinese firms accused of acquiring US technology to support military modernization
• Seven companies allegedly advancing China’s quantum computing capabilities
• Six subsidiaries of Inspur Group, a major cloud-computing provider previously blacklisted under the Biden administration

China Condemns the US Blacklist Expansion

In response, China’s foreign ministry strongly condemned the US restrictions, accusing Washington of weaponizing national security concerns to suppress Chinese technological growth. “The US must stop generalizing national security and harming normal trade relations,” a spokesperson told Reuters.

The escalating tension between the US and China is part of a broader economic and technological rivalry. The Biden administration had already implemented sweeping export controls on semiconductors and AI technologies under its “small yard, high fence” strategy—an approach aimed at tightly restricting a select few critical technologies with high military potential while allowing other economic activities to continue.

Closing Loopholes in US Tech Exports

Experts warn that despite these measures, some Chinese companies have found ways to circumvent restrictions through third-party suppliers. Alex Capri, a technology and geopolitics expert at the National University of Singapore, noted that Beijing has gained access to US dual-use technologies through intermediary countries.

“US officials will continue stepping up efforts to track and disrupt illegal semiconductor exports, particularly those made by Nvidia and AMD,” Capri said.

The blacklist expansion is part of a broader crackdown on Chinese AI firms, particularly as Chinese startups like DeepSeek gain traction in the global AI race. DeepSeek’s open-source, low-cost AI models are challenging proprietary US competitors, leading to heightened concerns about China’s technological self-sufficiency.

Pentagon’s Concerns Over China’s AI and Military Development

US officials, including Under Secretary of Commerce for Industry and Security Jeffrey I. Kessler, emphasized that the new restrictions send a “clear and resounding message” that US technologies will not be used for hypersonic missile development, military aircraft training, or AI-driven unmanned aerial vehicles (UAVs).

“The entity list is a powerful tool to cut off foreign adversaries from exploiting American technology for malicious purposes,” Kessler added.

The Growing US-China Tech War

The Trump administration previously introduced high tariffs and trade restrictions against China, which have only intensified under the Biden administration. With the latest blacklist expansion, Beijing faces even greater hurdles in its push for technological dominance, particularly in the AI and semiconductor industries.

As the US blacklists over 50 Chinese companies, global supply chains could face significant disruptions, and China may accelerate its push for domestic alternatives to American technology. The geopolitical battle over AI and semiconductors is far from over, and future US restrictions could further reshape the global tech landscape.

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