Washington has expanded its export control list, adding dozens of companies, including over 50 based in China. The U.S. asserts these entities were attempting to acquire advanced technologies like supercomputing, AI, and quantum computing for military applications, triggering strong objections from Beijing.
The Commerce Department's Bureau of Industry and Security's "entity list" now includes companies from Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates, totaling approximately 80 additions.
Among those listed are six subsidiaries of Inspur Group, a leading Chinese cloud computing and big data service provider already on the U.S. entity list since 2023.
The Beijing Academy of Artificial Intelligence also voiced strong opposition to its inclusion.
In a statement, the research institute expressed shock, stating, "We are shocked that a private non-profit scientific research institution has been added to the entity list. We strongly oppose this wrong decision without any factual basis and ask the relevant U.S. departments to withdraw it."
A review committee determined that BAAI, along with Beijing Innovation Wisdom Technology Co., were developing large AI models and advanced computer chips intended for military use.
China's Foreign Ministry responded sharply, denouncing the export controls as an abuse designed to "unjustly suppress Chinese enterprises."
Foreign ministry spokesperson Guo Jiakun stated during a press briefing, "It seriously violates international law and basic norms of international relations, severely damages the legitimate rights and interests of enterprises, and undermines the security and stability of global supply chains. China firmly opposes and strongly condemns this."
The U.S. aims to limit China's ability to develop ultra-fast supercomputers, hypersonic weapons, and other sensitive technologies. The restrictions also target South Africa's Test Flying Academy's training of Chinese troops, Iran's access to military items, and insecure nuclear and ballistic missile programs.
Companies on the list are subject to the "foreign direct product rule," allowing the U.S. to control re-exports and transfers of foreign-made products containing vital technology.
This move comes as the current administration plans further tariff hikes, escalating the existing trade tensions.
Existing tariffs on Chinese goods have already been raised to 20%. A 25% tariff on imports from countries buying oil or gas from Venezuela was also announced, impacting China due to its significant imports from Venezuela.
China has retaliated with countermeasures, including duties on American goods and an anti-monopoly investigation into Google.
Additionally, China has strengthened its sanctions regime, enacting laws to freeze assets of companies facing Chinese sanctions.