Against a backdrop of mounting tensions between the US and China, the US Commerce Department has taken action by placing four Chinese companies on its blacklist. The reason?
These companies have been identified for their role in providing artificial intelligence (AI) chips intended for China’s military advancement initiatives.
The move comes as a part of the efforts of the US government to safeguard sensitive American technology from being utilised for military purposes in China.
According to the report, the four blacklisted companies sanctioned include Linkzol (Beijing) Technology Co, Xi’an Like Innovative Information Technology Co, Beijing Anwise Technology Co, and SITONHOLY (Tianjin) Co. The companies are among the 11 latest additions to the Commerce Department Entity List announced this week.
Measures used by the US Government
The list serves as one of the measures used by the US government’s arsenal aimed at curbing the flow of sensitive American goods and technology to unauthorized recipients.
Additionally, the US has enforced sweeping limitations on the export of advanced semiconductors and chip-making equipment to China, a move intended to forestall the transfer of US technological prowess in support of China’s endeavors to modernize its military capabilities.
Export enforcement official Kevin Kurland said, “The blacklisted companies were acquiring US artificial intelligence chips for the Chinese military,”
“Being added to this list makes it difficult for these Chinese firms to procure American goods and technology,” Kurland said.
Nevertheless, China has vehemently denied these accusations, contending that the US is endeavoring to stifle Chinese enterprises. Dismissing the assertions put forth by the US, China’s Foreign Ministry spokesperson Mao Ning stated that the US is seeking to ‘contain and suppress’ Chinese companies.
US further limits exports to five other companies
Expanding on its restrictions, the US has additionally curtailed exports to five other companies accused of aiding in drone production and procurement for Russia’s engagement in the conflict in Ukraine and Iranian activities in the Red Sea.
According to TOI, one of these five entities was Jiangxi Xintuo Enterprise Co, a Chinese company allegedly associated with supporting Russia’s drone program, along with a network of firms supplying drone components to Iran.
In the first quarter of 2022, the Biden administration approved more than US$23 billion worth of licenses for companies to ship US goods and technology to blacklisted Chinese companies/
