BIZTECH
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US targets China's AI and tech firms in latest trade restrictions
The US blacklisted 80 entities, including Chinese AI firms, to prevent its technology from being used for military and security threats.
US targets China's AI and tech firms in latest trade restrictions
US trade restrictions aim to prevent unauthorised tech transfers. [Photo: AP]
March 26, 2025

The United States added dozens of entities to a trade blacklist on Tuesday, its Commerce Department said, in part to disrupt Beijing's artificial intelligence and advanced computing capabilities.

The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the department citing their "activities contrary to US national security and foreign policy."

Those added to the "entity list" are restricted from obtaining US items and technologies without government authorisation.

"We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives," said US Commerce Secretary Howard Lutnick.

The entities targeted include 11 based in China and one in Taiwan, accused of engaging in the development of advanced AI, supercomputers and high-performance AI chips for China-based users "with close ties to the country's military-industrial complex."

They include the Beijing Academy of Artificial Intelligence and subsidiaries of IT giant Inspur Group. Others were included for "contributions to unsafeguarded nuclear activities" or ballistic missile programs.

The aim is to prevent US technologies and goods from being misused for activities like high performance computing, hypersonic missiles and military aircraft training, said Under Secretary of Commerce for Industry and Security Jeffrey Kessler.

Two entities in Iran and China were also added to the list for seeking to procure US items for Iran's defense industry and drone programs, the Commerce Department said.

How US sanctions are fueling China’s ambition for chip self-reliance

As the US tightens access to advanced chip technology, Chinese companies are working toward long-term independence in the semiconductor sector.

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‘Hegemonism’

Beijing condemned the blacklisting of its firms, accusing Washington of "weaponising" trade and technology in a "typical act of hegemonism".

"We urge the US side to stop generalising the concept of national security... and stop abusing all kinds of sanctions lists to unreasonably suppress Chinese enterprises," foreign ministry spokesman Guo Jiakun said at a daily news conference.

China would take "necessary measures" to defend its firms' rights, Guo added. Several of the blacklisted companies did not respond to AFP's request for comment on Wednesday.

China hits back at US, bans export of 'military materials' to Washington

Beijing has responded to the move after Washington expanded its list of companies subject to export controls on computer chip-making equipment.

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Apple’s Tim Cook in China

Meahwhile, Apple boss Tim Cook has praised "the next generation of developers" during a visit to a technology hub in eastern China, as the US tech giant battles to stay relevant in the country's vast consumer market.

The iPhone maker last year lost its status as the best-selling smartphone brand in China, but has sought to boost its ties to the country in recent months.

"Thrilled to meet the next generation of developers at Zhejiang University today," Cook said Wednesday in a post on Chinese social media platform Weibo that included a video of him interacting with students.

The post came as Apple announced it would donate 30 million yuan ($4.1 million) to the college to provide students with technical and business training in app development.

Based in Hangzhou, Zhejiang University is known for producing elite tech talent, including Liang Wenfeng, the founder of AI startup DeepSeek.

The secret supply chain: How TSMC chips ended up in Huawei’s latest AI tech

The Chinese company’s use of TSMC chips in its latest AI tech, despite sanctions, raises questions about Beijing’s drive for self-reliance in the critical sector.

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SOURCE:TRT World and Agencies
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