The United States intensified its trade standoff with China today by adding over 50 Chinese companies to its export control “entity list,” accusing them of leveraging American expertise in supercomputing, artificial intelligence (AI), and quantum technology to bolster China’s military capabilities.
The move, announced by the Commerce Department’s Bureau of Industry and Security (BIS), also targets firms from Taiwan, Iran, Pakistan, South Africa, and the UAE, bringing the total to approximately 80 newly listed entities.
Among the notable additions are six subsidiaries of Inspur Group, China’s premier cloud computing and big data firm, already restricted since 2023, and the Beijing Academy of Artificial Intelligence (BAAI). The BAAI, a private non-profit, fiercely contested its inclusion, stating, “We are shocked and strongly oppose this baseless decision, urging U.S. authorities to retract it.”
A BIS review committee alleged that BAAI and Beijing Innovation Wisdom Technology Co. developed advanced AI models and chips for military use, a claim China denies.
China’s Foreign Ministry fired back, with spokesperson Guo Jiakun calling the action an “unjust suppression” that “violates international law, harms enterprises, and destabilizes global supply chains.” Beijing vowed to counter the measures, which align with broader U.S. efforts to curb China’s access to technologies critical for “exascale” supercomputers, hypersonic weapons, and other strategic advancements.
The BIS aims to thwart specific threats, including blocking South Africa’s Test Flying Academy from training Chinese troops with U.S. goods and disrupting Iran’s drone capabilities. Listed firms now face the “foreign direct product rule,” restricting reexports of items with U.S. technology deemed vital to national security.
This escalation coincides with the Trump administration’s looming tariff hikes, set to increase next week, building on existing 20% duties on Chinese imports. Trump’s recent pledge to impose 25% tariffs on nations buying Venezuelan oil—significant for China—adds fuel to the fire. In response, China has slapped duties on U.S. goods, launched an anti-monopoly probe into Google, and fortified its sanctions framework, including asset-freezing powers.
The clash underscores a deepening U.S.-China tech rivalry, with global supply chains caught in the crosshairs as both sides dig in.