US Adds Chinese Tech Firms to Its Export Control List

The United States has recently updated its export control list, adding numerous companies to it. This list now includes over 50 firms based in China. The U.S. government claims that these companies sought advanced knowledge in fields such as supercomputing, artificial intelligence, and quantum technology for military purposes.

In addition to Chinese firms, companies from Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates have also been included in the updated list, bringing the total number to approximately 80 businesses. Among those listed are six subsidiaries of the Inspur Group, which is recognized as China's leading cloud computing and big data service provider. This group was already added to the U.S. entity list earlier in 2023.

One notable entity listed is the Beijing Academy of Artificial Intelligence (BAAI). The BAAI expressed strong objections to its inclusion, stating, "We are shocked that a private non-profit scientific research institution has been added to the entity list. We strongly oppose this wrong decision without any factual basis and ask the relevant U.S. departments to withdraw it."

A review committee concluded that BAAI and another firm, Beijing Innovation Wisdom Technology Co., were involved in the development of advanced AI models and computer chips aimed at military applications.

In response, China's Foreign Ministry issued a statement condemning the U.S. entity list and export controls. They characterize these actions as an unjust attempt to suppress Chinese enterprises, claiming that the measures violate international law and damage global supply chains. According to spokesperson Guo Jiakun, "China firmly opposes and strongly condemns this."

The aim of these restrictions is to limit China's ability to acquire or develop extremely fast, or "exascale," supercomputers, which are necessary for creating advanced weaponry, including hypersonic weapons and other sensitive technologies. The Bureau of Industry and Security (BIS) also indicated that the measures aim to prevent South Africa’s Test Flying Academy from using U.S. goods to train Chinese military personnel, disrupt Iran’s access to unmanned aerial vehicles and other military items, and hinder the development of unsafe nuclear and ballistic missile programs.

Companies placed on this list must comply with the BIS's foreign direct product rule. This rule allows the U.S. to control the re-export and transfer of foreign-made products that incorporate technology considered vital for national security.

This tightening of export controls occurs as the Trump administration prepares to implement another round of tariff increases next week, marking an escalation of the ongoing trade conflict initiated by President Donald Trump during his first term. Trump has already raised tariffs on certain Chinese imports to 20% and plans to impose a 25% tariff on all goods imported from any country purchasing oil or gas from Venezuela. Notably, China imports a significant amount of oil from Venezuela.

In retaliation, China has imposed its own countermeasures, including implementing new tariffs on a range of American goods and launching an anti-monopoly investigation into Google. The Chinese government is also tightening its sanctions, introducing a law that enables it to freeze the assets of companies that fall under Chinese sanctions.

export, technology, China