Over 50 Chinese firms have been blacklisted in the latest U.S. trade crackdown, as Washington expands export restrictions to curb Beijing’s advancements in AI, quantum computing, and military technology.
The U.S. Commerce Department announced the additions on Tuesday, targeting companies involved in developing supercomputers, hypersonic weapons, and high-performance computing capabilities.
Among the newly listed entities are six subsidiaries of Inspur Group, a leading Chinese cloud computing and big data provider. Five of these units operate in China, while one is based in Taiwan. Inspur Group itself was added to the U.S. Entity List in 2023.
Other blacklisted firms include Nettrix Information Industry Co, Suma Technology Co, and Suma-USI Electronics, which were cited for supporting the development of Chinese exascale supercomputers and aiding military-related computing projects.
The U.S. measures also extend beyond China, targeting entities in Taiwan, Iran, Pakistan, South Africa, and the UAE. Washington has cited concerns over national security, stating that these firms are involved in acquiring U.S. technologies for military use, including quantum computing advancements and UAV (drone) development.
Commerce Secretary Howard Lutnick emphasized that the U.S. will not allow adversaries to exploit American technology to strengthen their militaries.
China’s Foreign Ministry condemned the U.S. decision, stating that it will take necessary measures to protect the interests of its enterprises. The Chinese embassy in Washington criticized the move as an attempt to weaponize trade and technology under the pretext of national security.
The Beijing Academy of Artificial Intelligence (BAAI), one of the targeted institutions, also issued a statement calling for the U.S. to reverse its decision.
The restrictions could impact business relations between U.S. tech companies and Chinese firms. When Inspur was blacklisted last year, major American chipmakers, including Nvidia and AMD, faced scrutiny over their dealings with the company.
The U.S. crackdown also extends to Iran, with new restrictions aimed at blocking its procurement of drones and missile technology. Additionally, some firms were blacklisted for allegedly supplying products to Huawei, a key player in China’s AI and telecommunications sector.
Companies on the U.S. Entity List are barred from purchasing American technology without special licenses, which are typically denied. Commerce official Jeffrey Kessler stated that the latest restrictions are meant to prevent U.S. technology from being misused for military applications, including hypersonic missiles and aircraft training.
The move is expected to further strain U.S.-China relations as Beijing looks for ways to counter Washington’s trade and technology restrictions.
