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U.S. Blacklists Dozens of Chinese Tech Firms in Escalation of AI and Quantum Computing Tensions

In a significant move aimed at curbing China’s military-linked technological progress, the United States has added over 70 Chinese companies to its export blacklist, part of a broader list of 80 international entities restricted from accessing U.S. technology. The targeted organizations are accused of supporting the development of artificial intelligence chips, exascale and quantum computing systems, and other high-performance technologies with military applications.

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced the additions as part of ongoing efforts to hinder foreign access to sensitive American innovations, particularly when linked to national security concerns. The new sanctions will effectively prevent U.S. firms from supplying hardware, software, or intellectual property to the blacklisted entities without a special license — one that is rarely granted.

Included in the updated list are six subsidiaries of China’s Inspur Group, a cloud computing and AI company that had already faced restrictions since 2023. According to U.S. officials, these subsidiaries have been involved in acquiring American-origin technologies for use in Chinese supercomputing and military programs, including the development of large language models and advanced AI processors for military operations.

The U.S. Commerce Department said the move is part of a larger strategy to disrupt China’s hypersonic weapons development, unsafeguarded nuclear activities, and ballistic missile programs. Twenty-seven additional Chinese companies were identified for acquiring sensitive items for China’s military modernization, and seven were named for contributing to the advancement of the Chinese Communist Party’s quantum computing initiatives.

Two other entities were penalized for supplying restricted products to blacklisted companies such as Huawei and HiSilicon, both of which have faced longstanding U.S. restrictions.

U.S. Secretary of Commerce Howard Lutnick emphasized the gravity of the decision, stating, “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives.”

China swiftly condemned the move, with the foreign ministry accusing Washington of misusing national security claims and calling for an end to what it described as the “generalization of national security” in trade and technology policy. Chinese scholars and officials have characterized the restrictions as a reflection of growing anxiety within the U.S. over China’s rapid advancements in AI, quantum computing, and other frontier technologies.

Despite the pressure, Beijing vowed to continue its path of technological innovation and self-reliance, reaffirming its commitment to high-tech development.

Stay tuned to DC Brief for further updates on this story and other technology developments.

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