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    Home » US Blacklists Chinese Firms, Citing AI Risks
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    US Blacklists Chinese Firms, Citing AI Risks

    Art RyanBy Art RyanMarch 27, 2025No Comments3 Mins Read
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    The US Department of Commerce has added 80 entities across multiple countries—including more than 50 from China—to its export blacklist in a sweeping move aimed at limiting Beijing’s access to advanced technologies with potential military applications.

    Announced on Tuesday by the Bureau of Industry and Security (BIS), the decision targets organisations involved in artificial intelligence, supercomputing, quantum technologies, unmanned aerial vehicles (UAVs), and other sensitive capabilities. The restrictions prohibit American companies from exporting certain US-origin technologies to the named entities without a special licence.

    The latest update, the first major move of its kind under the Trump administration, follows escalating trade tensions between Washington and Beijing and comes as the US seeks to close loopholes that have enabled sanctioned Chinese firms to continue sourcing advanced chips via intermediaries.

    Targeting military use and global networks

    Among the additions are:

    • 12 entities (11 in China, 1 in Taiwan) for developing advanced AI, high-performance computing chips, and supercomputers tied to China’s military-industrial complex.
    • 27 Chinese firms for attempting to acquire US-origin items in support of China’s military modernisation—including its hypersonic weapons program.
    • Seven China-based entities involved in the development of quantum technologies, which BIS described as having “serious ramifications for US national security.”
    • Two entities for supplying products to previously sanctioned Chinese tech giants Huawei and HiSilicon.
    • 13 entities, mostly from China, for contributing to unsafeguarded nuclear activities, and seven more for links to ballistic missile programs.
    • Ten entities across China, South Africa, and the UAE with ties to the Test Flying Academy of South Africa (TFASA), previously blacklisted for training Chinese military pilots using Western techniques.
    • Two entities in Iran and China attempting to procure US items for Iran’s UAV and defence programs.

    The update also modifies an existing listing for Dart Aviation by adding new aliases and addresses. The company had been blacklisted in 2019 for transshipping US goods to sanctioned destinations.

    Beijing lashes out

    The move drew swift condemnation from China. The Beijing Academy of Artificial Intelligence—one of the organisations named—said it was “shocked” by the decision and “strongly opposed” its inclusion, calling the action baseless. China’s Foreign Ministry also criticised the US for “abusing” national security justifications and accused Washington of “hegemonism” and violating international law.

    Beijing warned of “necessary measures” to defend the interests of Chinese firms, while reiterating calls for the US to stop “unreasonably suppressing Chinese enterprises.”

    Part of broader strategic controls

    The blacklist forms part of a broader US strategy to deny China access to key technologies with dual-use potential—civilian and military—especially in areas like AI chips, supercomputers, and semiconductors. The move adds to previous controls targeting companies such as Nvidia and AMD and comes as AI development in China surges, led by low-cost open-source models from firms like DeepSeek.

    Also affected are subsidiaries of Inspur Group, a major Chinese cloud computing and data firm already sanctioned under the Biden administration in 2023. These firms were cited for contributing to military supercomputing projects and acquiring advanced US chips despite existing controls.

    The rules also invoke the foreign direct product rule, allowing the US to restrict reexports and transfers of foreign-made goods incorporating US-origin technology—tightening the net around intermediary countries and transit hubs.

    Source: https://www.finnewsnetwork.com.au/

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