The United States has significantly expanded its export control list, incorporating 80 companies from multiple countries, including Pakistan, into its blacklist.
On Tuesday, the US Department of Commerce imposed trade restrictions on six subsidiaries of China’s Inspur Group, a prominent provider of cloud computing and big data services, along with dozens of other Chinese firms. These entities have been accused of contributing to military supercomputing advancements.
Five of the newly blacklisted Inspur subsidiaries operate in China, while one is based in Taiwan. The parent company, Inspur Group, had already been placed under trade restrictions in 2023.
Among the newly added firms, more than 50 are headquartered in China, with others located in Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates. The objective of these restrictions is to hinder China’s progress in high-performance computing, artificial intelligence, and hypersonic weapons development.
Commerce Secretary Howard Lutnick emphasized the necessity of these measures, stating, “We will not permit adversaries to exploit American technology to strengthen their militaries and endanger American lives.”
In response, China’s foreign ministry strongly criticized the US decision, asserting that China will take appropriate actions to protect the rights of its enterprises. Meanwhile, the Chinese embassy in Washington condemned the move, calling on the US to “immediately cease weaponizing trade and technology under the guise of military concerns.”
While Inspur Group has not yet issued an official response, the US government has reaffirmed its commitment to preventing Iran from acquiring drone technology, ballistic missile components, and other defense-related materials.
The Entity List, managed by the Commerce Department, includes firms deemed a threat to US national security or foreign policy. Companies appearing on this list must obtain specific licenses to trade with American firms, which are generally denied.
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Commerce Department official Jeffrey Kessler highlighted the government’s strategy, saying, “Our objective is to ensure that US technology and products are not misused for applications such as hypersonic missiles, military aircraft training, and UAV (drone) development, all of which pose risks to our national security.”
Following the blacklisting of Inspur Group in 2023, semiconductor giants such as AMD and Nvidia faced scrutiny regarding their business dealings with the company. However, it remains unclear whether US-based firms have continued their associations with Inspur’s subsidiaries. Nvidia declined to comment, and AMD has yet to provide an official statement.
Other Chinese companies, including Nettrix Information Industry Co, Suma Technology Co, and Suma-USI Electronics, were also placed on the blacklist for their contributions to China’s development of exascale supercomputers. These machines, capable of processing enormous amounts of data at incredible speeds, are used for large-scale simulations and military applications.
The US alleges that these firms have provided crucial manufacturing support to Sugon, also known as Dawning Information Industry Co, which was added to the Entity List in 2019 due to its involvement in military supercomputer development.
Several companies have also been blacklisted for their roles in China’s quantum technology advancements and for supplying products to restricted firms, including Huawei, which remains central to China’s AI and technological expansion.
Frequently Asked Questions (FAQs)
- Why did the US add these 80 companies to the export blacklist?
- The US government cited national security concerns, particularly regarding advancements in supercomputing, artificial intelligence, and hypersonic weapons by China and its allies.
- Which countries have companies affected by the US trade restrictions?
- The newly blacklisted firms originate from China, Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates.
- How does being on the Entity List affect these companies?
- Companies on the US Entity List are restricted from purchasing US-origin technology and goods unless they obtain special licenses, which are generally denied.
- What is Inspur Group’s role in this development?
- Inspur Group, a Chinese cloud computing and big data provider, was blacklisted in 2023. Now, six of its subsidiaries have also been added due to their alleged involvement in military-related computing projects.
- What has been China’s response to these new sanctions?
- China has condemned the US move, calling it an attempt to “politicize and weaponize” trade and technology. The Chinese government has vowed to take necessary measures to protect its companies’ interests.
