The US Commerce Department has placed four Chinese companies on its Entity List for allegedly supplying artificial intelligence (AI) chips to China’s military modernization efforts. This action comes at a time of heightened tensions between the US and China. Among the 11 companies added to the list this week, the blacklisted companies are facing restrictions to prevent sensitive American technology from being used for military purposes in China.
The US has implemented broad restrictions on shipping advanced semiconductors and chip making equipment to China to prevent technology leaks to China’s military programs. The banned Chinese IT companies include Linkzol (Beijing) Technology Co, Xi’an Like Innovative Information Technology Co, Beijing Anwise Technology Co, and SITONHOLY (Tianjin) Co. These companies are finding it challenging to acquire American goods and technology due to their placement on the Entity List.
Kevin Kurland, an export enforcement official, stated that the blacklisted companies were involved in obtaining US AI chips for Chinese military use. However, China has denied any wrongdoing and has vowed to take necessary steps to protect its interests. The country’s Foreign Ministry spokesperson, Mao Ning, dismissed the US claims as an attempt to contain and suppress Chinese companies.
In addition to the restrictions on Chinese companies, the US has also limited exports to five other companies accused of aiding drone production for Russia’s war in Ukraine and Iranian attacks in the Red Sea. These actions have faced condemnation from China, which argues that they disrupt normal economic cooperation with Russia. China has stated its intention to respond to these moves by the US to protect its interests.