US expands export controls on Chinese tech firms; Beijing slams move

Bangkok: The United States has added more than 80 companies, including over 50 Chinese firms, to its export control list, citing concerns that they were seeking advanced technologies for military applications.

The companies, listed by the Commerce Department’s Bureau of Industry and Security (BIS), are accused of acquiring expertise in supercomputing, artificial intelligence, and quantum technology for military use. Firms from Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates were also included in the updated entity list.

Among the newly listed firms are six subsidiaries of Inspur Group, a leading Chinese cloud computing and big data service provider that had already been blacklisted by the US in 2023. The Beijing Academy of Artificial Intelligence (BAAI) was also included, a move that drew sharp criticism from the research institute.

"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 US departments to withdraw it," BAAI said in a statement.

A US review committee determined that BAAI and Beijing Innovation Wisdom Technology Co. had developed large AI models and advanced computing chips for military purposes.

China denounces US sanctions

China’s Foreign Ministry strongly condemned the move, calling it an attempt to suppress Chinese enterprises through unfair trade restrictions.

"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," Foreign Ministry spokesperson Guo Jiakun said at a press briefing.

The BIS stated that the restrictions aim to limit China’s ability to develop exascale supercomputers, hypersonic weapons, and other sensitive technologies. The list also includes entities linked to military training programs in South Africa, drone development in Iran, and nuclear and ballistic missile research.

Companies on the list will be subjected to the Foreign Direct Product Rule, which allows the US to regulate exports and reexports of foreign-made products containing American technology deemed critical to national security.