{"id":582,"date":"2025-03-27T19:48:43","date_gmt":"2025-03-27T19:48:43","guid":{"rendered":"https:\/\/www.techrepublic.com\/?p=4300149"},"modified":"2025-03-27T19:48:43","modified_gmt":"2025-03-27T19:48:43","slug":"chinas-ai-ambitions-curbed-as-us-cracks-down-on-military-linked-tech-firms","status":"publish","type":"post","link":"https:\/\/blog.tecnoartesanos.com\/index.php\/2025\/03\/27\/chinas-ai-ambitions-curbed-as-us-cracks-down-on-military-linked-tech-firms\/","title":{"rendered":"China\u2019s AI Ambitions Curbed as US Cracks Down on Military-Linked Tech Firms"},"content":{"rendered":"<figure id=\"attachment_4300150\" aria-describedby=\"caption-attachment-4300150\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4300150\" src=\"https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1.jpg\" alt=\"U.S. Secretary of Commerce Howard Lutnick.\" width=\"1350\" height=\"900\" srcset=\"https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1.jpg 1350w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-300x200.jpg 300w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-1024x683.jpg 1024w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-768x512.jpg 768w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-50x33.jpg 50w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-770x513.jpg 770w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-370x247.jpg 370w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-270x180.jpg 270w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-740x493.jpg 740w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-540x360.jpg 540w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-1110x740.jpg 1110w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/52634684181_25e3308233_o-1-810x540.jpg 810w\" sizes=\"auto, (max-width: 1350px) 100vw, 1350px\"><figcaption id=\"caption-attachment-4300150\" class=\"wp-caption-text\">U.S. Secretary of Commerce Howard Lutnick (pictured) said that the U.S. \u201cwill not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives.\u201d Image: World Economic Forum\/Flickr\/Creative Commons<\/figcaption><\/figure>\n<p>The U.S. has blacklisted approximately 80 foreign entities, citing heightened national security concerns. The majority are Chinese companies suspected of procuring American hardware to aid the development of military technologies.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_targets_Chinas_AI_and_supercomputing_push\"><\/span>U.S. targets China\u2019s AI and supercomputing push<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Eleven entities based in China and one in Taiwan now face trade restrictions for \u201cengaging in the development of advanced AI, supercomputers, and high-performance AI chips for China-based end-users with close ties to the country\u2019s military-industrial complex,\u201d according to the <a href=\"https:\/\/www.bis.gov\/press-release\/commerce-further-restricts-chinas-artificial-intelligence-advanced-computing-capabilities\" target=\"_blank\" rel=\"noopener\">U.S. Bureau of Industry and Security<\/a>.<\/p>\n<p>Entities named include the Beijing Academy of Artificial Intelligence, Beijing Innovation Wisdom, Henan Dingxin, Nettrix, Suma Technology, Suma-USI Electronics, and six subsidiaries of Inspur Group. All of them are now barred from purchasing U.S. goods without a government-issued license.<\/p>\n<p>The BIS said that adding the Chinese entities to the Entity List will restrict the Chinese Communist Party\u2019s capability to develop high-performance and exascale computing systems \u2014 machines that can perform complex simulations and analyse massive datasets \u2014 as well as quantum technologies and hypersonic weapons.<\/p>\n<p><strong>SEE: <a href=\"https:\/\/www.techrepublic.com\/article\/interim-rule-artificial-intelligence-diffusion\/\">US Chip Export Rule Proposes Limits to Thwart Chinese GPUs<\/a><\/strong><\/p>\n<p>Nettrix and Inspur Group have both been targeted by U.S. restrictions in the past but largely escaped significant operational setbacks. Nettrix was started by former executives of Sugon, a server manufacturer with ties to the Chinese military and government surveillance through the Chinese Academy of Sciences.<\/p>\n<p>When the U.S. imposed restrictions on Sugon in 2019, the company\u2019s leadership formed Nettrix using Sugon\u2019s technology and customer base, which included Nvidia, Intel, and Microsoft \u2014 effectively allowing the business to continue under a new name, according to <a href=\"https:\/\/www.nytimes.com\/2024\/08\/04\/technology\/china-ai-microchips.html\" target=\"_blank\" rel=\"noopener\">The New York Times<\/a>. Henan Dingxin and the two Suma entities have also been linked to Sugon by <a href=\"https:\/\/public-inspection.federalregister.gov\/2025-05427.pdf\" target=\"_blank\" rel=\"noopener\">providing manufacturing support<\/a>.<\/p>\n<aside class=\"pinbox right\">\n<h3 class=\"heading\">More must-read AI coverage<\/h3>\n<\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Loopholes_and_legal_maneuvers_under_scrutiny\"><\/span>Loopholes and legal maneuvers under scrutiny<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Similarly, the Biden administration added the Inspur parent company to the Entity List in 2023. However, U.S. organisations like Intel and IBM resumed business with its subsidiaries not long after. Inspur Electronic Information \u2014 now blacklisted as of this week \u2014 quickly changed its registered address to a location roughly two kilometres away from its parent company, in a possible attempt to circumvent restrictions.<\/p>\n<p>The Beijing Academy of Artificial Intelligence and Beijing Innovation Wisdom were both added to the list for developing large-scale AI models and advanced computing chips to support China\u2019s military modernization. \u201cWe will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,\u201d U.S. Secretary of Commerce Howard Lutnick said in a statement.<\/p>\n<p>The Chinese foreign ministry has referred to the new U.S. restrictions as \u201ctypical hegemonism\u201d in a statement to state <a href=\"https:\/\/english.news.cn\/20250326\/f40b83c576a94235abaec08672025215\/c.html\" target=\"_blank\" rel=\"noopener\">news agency Xinhua<\/a>. \u201cWe urge the U.S. side to stop overstretching the concept of national security, stop politicizing, instrumentalizing and weaponizing sci-tech and trade issues,\u201d the spokesperson said.<\/p>\n<p>The list of newly blacklisted entities also included companies from Iran, Pakistan, South Africa, and the United Arab Emirates. The U.S. aims to disrupt Iran\u2019s acquisition of drones and military technologies, block the development of unsafeguarded nuclear and ballistic weapons programs in Iran and Pakistan. Additionally, it seeks to block the Test Flying Academy of South Africa from using U.S. technology to train the Chinese military.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Secretary of Commerce Howard Lutnick (pictured) said that the U.S. \u201cwill not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives.\u201d Image: World Economic Forum\/Flickr\/Creative Commons The U.S. has blacklisted approximately 80 foreign entities, citing heightened national security concerns. The majority are Chinese companies suspected of procuring American [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China\u2019s AI Ambitions Curbed as US Cracks Down on Military-Linked Tech Firms - TecnoArtesanos Tech Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.tecnoartesanos.com\/index.php\/2025\/03\/27\/chinas-ai-ambitions-curbed-as-us-cracks-down-on-military-linked-tech-firms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China\u2019s AI Ambitions Curbed as US Cracks Down on Military-Linked Tech Firms - TecnoArtesanos Tech Blog\" \/>\n<meta property=\"og:description\" content=\"U.S. Secretary of Commerce Howard Lutnick (pictured) said that the U.S. \u201cwill not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives.\u201d Image: World Economic Forum\/Flickr\/Creative Commons The U.S. has blacklisted approximately 80 foreign entities, citing heightened national security concerns. 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