The U.S. on Tuesday added dozens of Chinese companies to its export blacklist in an effort to further curtail Beijing’s advances in artificial intelligence and advanced computing, building on existing measures to restrict access to advanced AI chips from the likes of Nvidia (NVDA). The move comes after DeepSeek unleashed a wave of AI announcements from Chinese companies in recent, stoking fears about China’s ability to achieve self-sufficiency in AI and pressuring higher-cost U.S. models. And it comes against a wider backdrop of the struggle for technological dominance between the U.S. and China, which has started to look less one-sided than it once did.
The U.S. Department of Commerce’s Bureau of Industry and Security added 80 organizations to an “entity list,” with more than 50 from China.
It said the moves will restrict the Chinese Communist Party’s (CCP) ability to acquire and develop high-performance computing capabilities, including quantum computing, for use by its military. The move is also aimed at slowing China’s development of its hypersonic weapons program.
“The Commerce Department is taking decisive action to protect America. We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” said U.S. Secretary of Commerce Howard Lutnick. “We are committed to using every tool at the Department’s disposal to ensure our most advanced technologies stay out of the hands of those who seek to harm Americans.”
Eleven Chinese firms were added to the blacklist for engaging in the development of advanced AI, supercomputers, and high-performance AI chips for China-based end-users with close ties to the country’s military, the Commerce Department said. Two Chinese entities are being added for selling products sanctioned companies including Huawei and its affiliated chipmaker HiSilicon.
Entities from a number of other countries were also added to the blacklist as the U.S. aims at intermediaries who enable Chinese companies to gain access to key U.S. technology via third parties despite restrictions. Washington in turn is stepping up efforts to restrict firms from circumventing rules aimed at stopping China having advanced chips made by Nvidia and Advanced Micro Devices (AMD).
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