US blacklists numerous Chinese firms for military-linked tech acquisition

In March 2023, the United States announced significant new restrictions by adding around 80 companies to its export control list, with more than 50 of them based in China. This action aimed primarily at hindering China's ability to acquire technologies that could bolster its military capabilities. Among the listed companies are subsidiaries of the Inspur Group, known for cloud computing and big data services, as well as the Beijing Academy of Artificial Intelligence, which voiced strong opposition to the listing. The U.S. Commerce Department’s Bureau of Industry and Security asserted that the selected entities were engaged in actions deemed unfavorable to U.S. national security and foreign policy. These entities were involved in critical fields like supercomputing, artificial intelligence, and quantum technology, which the U.S. government believes could be exploited for military purposes. The Trump administration's aggressive move was also perceived as a part of the broader trade war initiated earlier, aimed at cutting off technological access to perceived adversaries, particularly China and Iran. The U.S. aimed to prevent these nations from enhancing their military technology, as well as to limit Iran's access to drones and nuclear-capable technology. Following the listing, China responded strongly against the U.S. actions, describing them as unjust suppression of Chinese enterprises that violate international law and disrupt global supply chains. The Chinese government emphasized that these actions hinder legitimate business interests and contravene basic international relations norms. As a result, it urged the U.S. to retract its decisions regarding the entity list, underscoring escalating tensions between the two nations as they navigate complex trade and security issues.