US Commerce Department Blacklists Four Chinese Companies in ‘Significant Step’ to Restrict Sensitive Technology to Military Programs

The US Commerce Department has recently placed four Chinese companies on its Entity List for allegedly supplying artificial intelligence (AI) chips to China’s military modernization efforts. This action has come at a time of heightened tensions between the US and China, and it is seen as a major step in restricting the flow of sensitive American technology to China’s military programs.

Among the 11 companies added to the list this week, four have been blacklisted: Linkzol (Beijing) Technology Co, Xi’an Like Innovative Information Technology Co, Beijing Anwise Technology Co, and SITONHOLY (Tianjin) Co. These companies are now facing restrictions that will prevent them from obtaining American goods and technology.

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. It is likely that we will see more sanctions imposed on both countries in the near future as tensions continue to escalate.