The United States has placed 80 companies and institutions from multiple countries, including Pakistan and China, on its export control list. The move, announced by the US Commerce Department, is aimed at preventing American technologies and goods from being used in military applications, including high-performance computing, hypersonic missiles, and artificial intelligence.
China Among the Most Affected
Of the 80 newly blacklisted entities, 54 are from China. The US government accused these firms of contributing to China’s quantum technology advancements, hypersonic weapons development, and artificial intelligence capabilities. Among them are six subsidiaries of Inspur Group, a major cloud computing and big data provider, which had already been blacklisted in 2023. The US claims these subsidiaries aided the Chinese military in building supercomputers.
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Other newly listed Chinese firms include Nettrix Information Industry Co, Suma Technology Co, and Suma-USI Electronics. According to the Commerce Department, these companies have helped develop exascale supercomputers, which process massive amounts of data at extreme speeds, and have supplied components to firms already on the blacklist, including Huawei.
Pakistan and Other Nations Targeted
In addition to China, entities from Pakistan, Iran, South Africa, Taiwan, and the United Arab Emirates (UAE) have also been added to the list. The US administration accused these organizations of supporting Pakistan’s nuclear program and missile development, as well as assisting Iran in obtaining drones and defense equipment. Companies placed on the blacklist are barred from obtaining American technology and products without special government approval, which is rarely granted.
US Justification for the Blacklist
The US Commerce Department justified the move as a national security measure. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” said Commerce Secretary Howard Lutnick. Under Secretary Jeffrey Kessler added that the restrictions are designed to prevent US goods from being misused in activities such as military aircraft training and UAV (drone) development.
The Biden administration has continued the aggressive stance on technology restrictions established under former President Donald Trump. Washington has consistently sought to curb China’s advancements in artificial intelligence, semiconductors, and military technology by restricting access to cutting-edge US components.
China’s Response
Beijing swiftly condemned the move, accusing the US of using trade restrictions as a geopolitical weapon. “We urge the US to stop abusing sanctions lists to unreasonably suppress Chinese enterprises,” said foreign ministry spokesman Guo Jiakun. The Chinese Commerce Ministry also criticized the decision, stating it was not conducive to resolving disputes through dialogue. The Chinese embassy in Washington echoed these sentiments, demanding the US “immediately stop using military-related issues as pretexts to politicize, instrumentalize, and weaponize trade and tech issues.”
Impact on US-China Tech Rivalry
This latest move is expected to deepen tensions between Washington and Beijing, especially in the technology sector. In previous cases, US blacklisting of Chinese firms has led to countermeasures from China, including restrictions on American companies operating in the country.
The inclusion of Inspur Group’s subsidiaries is particularly significant. When Inspur was first blacklisted in 2023, US chipmakers AMD and Nvidia faced scrutiny over their dealings with the company. At the time, industry insiders debated whether firms had to halt supplying Inspur’s subsidiaries, a question that remains unresolved. Both Nvidia and AMD declined to comment on whether they continue to do business with the newly blacklisted companies.
Restrictions on Iran and Pakistan
Apart from China, the US has intensified efforts to prevent Iran from acquiring drone-related technologies and advancing its ballistic missile program. Similarly, entities linked to Pakistan’s nuclear and missile activities were targeted. While specific Pakistani companies were not named in the announcement, the Commerce Department stated they had contributed to sensitive military programs.
Widening US Crackdown
The US has long used its Entity List as a tool to enforce national security and foreign policy priorities. Companies placed on the list face significant trade restrictions, making it difficult for them to access American technology. These measures are seen as part of Washington’s broader strategy to limit adversarial nations’ ability to develop advanced military capabilities.
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By adding more firms, the US is further tightening controls over strategic technologies, particularly in artificial intelligence, semiconductors, and high-performance computing. This move will likely impact the global supply chain, given the interconnected nature of the tech industry.