Trade War Escalates as US Blacklists More Chinese Companies for Supplying AI Chips to Military

Four Chinese Technology Companies Banned by US for Alleged Assistance to Military

The US Commerce Department has recently blacklisted four Chinese companies on allegations of supplying artificial intelligence chips to China’s military modernization programs. This move has escalated tensions between the US and China, with the companies being among 11 new additions to the Commerce Department Entity List this week. The list serves as a tool to prevent sensitive American goods and technology from reaching unauthorized hands.

The banned Chinese IT firms include Linkzol (Beijing) Technology Co, Xi’an Like Innovative Information Technology Co, Beijing Anwise Technology Co, and SITONHOLY (Tianjin) Co. In addition to the blacklisted companies, the US has imposed strict restrictions on the shipment of advanced semiconductors and chip-making equipment to China in an effort to safeguard American technology from being used in China’s military advancements.

According to reports, Kevin Kurland, an export enforcement official, stated that the blacklisted companies were involved in obtaining US AI chips for Chinese military purposes. Being placed on the Entity List makes it significantly challenging for these companies to acquire American goods and technology. China has denied the allegations, with Foreign Ministry spokesperson Mao Ning accusing the US of trying to “contain and suppress” Chinese companies and promising to take necessary action to protect its interests.

The US has also restricted exports to five additional companies, including a Chinese firm, Jiangxi Xintuo Enterprise Co, allegedly aiding Russia’s drone program, and a network of companies providing drone components to Iran. These actions have been criticized by China as they disrupt normal economic cooperation with Russia.

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