The US Adds Dozens Of Chinese AI & Tech Firms To The Entity List

The new administration in Washington has taken its first set of harsh measures against the Chinese tech industry. Trump has added dozens of companies, most of them based in China, to the “Entity List.” The US hopes this move will effectively blacklist China from access to key AI hardware. It also aims to curtail China’s advancements in other technologies, such as quantum computing.

There are a total of 80 new firms added to the Entity List, with more than 50 being Chinese. If you’re not aware, the US Entity List “identifies persons or addresses of persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States.” Trump himself added companies such as Huawei and ZTE during his first term. Organizations included on the list cannot do business with US companies or the US’s international partners.

The US blacklists more than 50 companies, targeting China’s AI and advanced computing development

According to the Department of Commerce’s Bureau of Industry and Security, many of the new companies added to the list developed supercomputers and artificial intelligence technology for military purposes for China. 27 of these companies used US-made equipment for this purpose. Seven of the companies focused on developing quantum computing technology. Two of the companies were suppliers to Huawei and HiSilicon, its chipmaking subsidiary.

Six of the companies were added because they are subsidiaries of Inspur Group, a Chinese cloud computing firm that was already blacklisted by Joe Biden in 2023.

US authorities say they have reason to believe that Chinese companies are using third parties to acquire equipment with US technology in ways that circumvent current restrictions. Therefore, expanding the scope of these restrictions seeks to end such practices.

“A clear, resounding message,” says the US administration

Jeffrey I. Kessler, Under Secretary of Commerce for Industry and Security, said that the Trump administration will prevent U.S. technologies from “being misused for high performance computing, hypersonic missiles, military aircraft training, and UAVs (unmanned aerial vehicle) that threaten our national security.” The new measures are “sending a clear, resounding message,” he added.

It didn’t take China long to respond to the US’s new trade restrictions. The country’s foreign ministry said it “strongly condemns” the measures. He also said that the US should “stop generalizing national security.” Beijing might respond with its own set of restrictions, as it has in the past.