The United States on Tuesday added 80 companies to its export blacklist, with more than 50 from China, as part of its ongoing efforts to limit Beijing’s advancements in artificial intelligence (AI) and advanced computing technologies.
The U.S. Department of Commerce’s Bureau of Industry and Security placed these 80 companies on an “entity list,” which prohibits U.S. companies from supplying them without special government approval.
Many of the blacklisted firms are linked to China’s push to develop supercomputing, AI, and quantum technologies—critical areas for military and defense applications, CNBC reported.
While more than 50 of the companies are based in China, others are located in Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates.
The list includes 27 Chinese entities for obtaining U.S.-made goods to aid China’s military modernization and seven companies for contributing to the development of China’s quantum technology. Also included on the “entity list” were six subsidiaries of the Chinese cloud-computing company Inspur Group, which was sanctioned by the Biden administration in 2023.
Security Concerns At The Core Of Restrictions
Jeffrey I. Kessler, Under Secretary of Commerce for Industry and Security, stressed that the Trump administration’s objective is to prevent U.S. technologies from being used in ways that could threaten national security. He stated that the latest restrictions send a clear message to stop U.S. technology from being misused in military systems such as hypersonic missiles, UAVs (unmanned aerial vehicles), and military aircraft training.
The Department of Commerce pointed out that many of the companies on the list are connected to China’s military advancements, including progress in AI, supercomputing, and high-performance AI chips.
Two companies were specifically accused of supplying parts to Chinese entities already under U.S. sanctions, such as Huawei and its affiliated chipmaker HiSilicon.
“We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” Commerce Secretary Howard Lutnick said.
The new measures are designed to limit China’s access to exascale computing technology, which processes vast amounts of data at high speeds, and quantum technologies critical for advanced military and defense systems. The inclusion of companies such as Nettrix Information Industry, Suma Technology, and Suma-USI Electronics on the list highlights concerns about their involvement in advancing the exascale supercomputing capabilities, according to Reuters.
This latest move builds on previous actions against Chinese firms, such as the blacklisting of Sugon (Dawning Information Industry Co.), a major Chinese computer server manufacturer, in 2019. These companies are accused of using U.S. technologies for military applications, including supercomputers that support China’s defense systems, Commerce Department stated.
Rising Tensions Between U.S. And China
The new measures also address concerns that Chinese companies have been using third parties to gain access to U.S. technologies, circumventing restrictions, which has led to Chinese firms acquiring strategic dual-use technologies despite existing export controls.
The export restrictions come as tensions between Washington and Beijing continue to escalate. The Trump administration has already imposed tariffs on China, and now, with these additional controls, aims to stifle the country’s technological advancements in areas crucial to military power.
In particular, the rapid growth of Chinese AI startup DeepSeek, which has been driving the adoption of low-cost AI models in China, has also put pressure on U.S. companies that rely on more expensive, proprietary models.
China’s Response To U.S. Actions
In response, the Chinese embassy in Washington condemned the U.S. actions, calling them “politically motivated.” The embassy demanded that the U.S. stop using military-related issues as a pretext to politicize trade and technology matters, labeling the move as an attempt to weaponize economic relations.
Aside from targeting Chinese firms, the U.S. has also sought to disrupt other countries’ efforts to procure defense technologies. For example, the U.S. is working to prevent Iran from acquiring drones and related defense equipment, as well as from advancing its ballistic missile program and nuclear activities.