U.S. Adds Export Restrictions to More Chinese Tech Firms Over Security Concerns
The Trump Administration Tuesday added 80 companies and organizations to a list of companies to which the purchase of American technologies and other exports is forbidden due to national security problems.
The move, which has mainly targeted Chinese companies, turns off on companies that have been large buyers of American chips of Nvidia, Intel and AMD. He also closed the gaps that the Trump administration officials have criticized for a long time in allowing Chinese companies to continue to advance technologically despite the US restrictions.
A company added to the list, Nutrix Information Industry, was at the center of A 2024 investigation by the New York Times That showed how Some Chinese managers had bypassed the US restrictions aimed at cutting China from advanced chips to make artificial intelligence.
Nettrix, one of the largest Chinese producers of computer servers used to produce artificial intelligence, was started by a group of former Sugon managers, a company that provided an advanced calculation to the Chinese military and built a system that the government used to monitor persecuted minorities In the western region of Xinjiang.
In 2019, the United States added Sugon to his “list of entities”, limit exports to national security problems. The Times survey noted that, six months later, the managers trained Nittrix, using Sugon technology and inheriting some of its customers. Times journalists also discovered that Nutrix owners shared a complex in Eastern China with Sugon and other connected companies.
After Sugon was identified and limited by the United States, his longtime partners – Nvidia, Intel and Microsoft – quickly formed ties with Nutrix, found the investigation.
The records obtained via Wirescreen, a business intelligence platform, showed that Sugon and Nutrix have connections with the Chinese Academy of Sciences, A vast research institute This develops the chip technology, parts of which the United States have put to the set for national security problems. The supply documents indicated that Netrrix had sold server to universities that host defense workshops and IT security companies that work with the military and on the large Chinese firewall, among other customers.
The Trump administration added 54 companies and organizations from China to the list of entities on Tuesday, as well as over two dozen from Iran, Pakistan, South Africa, United Arab Emirates and Taiwan.
The added entities had given contributions to Pakistani nuclear activities and its missile program, the ability of advanced quantum technology and the development of hypersonical weapons and tried to circumvent US controls on Iran, among other actions, said the administration.
“We will not allow opponents to exploit American technology to strengthen their soldiers and threaten American life,” said Howard Lutnick, secretary to trade.
The Trump administration also expanded its penalties on Tuesday to several Inspur Group branches, which was a significant customer of Intel and other US technological companies. The administration stated that these entities helped the development of supercomputer by Inspir that they had been used by the Chinese military and had tried to acquire US technology in support of this.
The Biden Administration added the Mother Company of Inspur to the list of entities in 2023, but after a short break, the US companies continued to do business with the inspur branches. Ispur Group has moved his address recorded in a place about a mile away from his mother group in 2023.
Commercial experts have said that the impact of the lists of US entities can be easy to dodge for companies, because the list of entities is linked to a specific name and address.
The entities of Tuesday together will influence a significant part of the Chinese market for servers, a type of computer needed to generate artificial intelligence. The Trump administration has also added a special designation to its restrictions to expand sanctions globally, which will prevent companies from trying to bypass the US rules by exporting products to Chinese businesses from countries other than the United States.
The list of entities was created under the Clinton administration to prevent opponents from developing weapons of mass destruction, but the presidents have exercised it increasingly aggressive in the last ten years.
Other groups added to the list Tuesday included the Beijing Academy of Artificial Intelligence, which the administration added that it was added for trying to acquire artificial intelligence models and chips in support of Chinese military modernization.
