The U.S. Commerce Department Expands Blacklist of Chinese Entities

The U.S. Department of Commerce has taken significant steps by adding 80 entities from various countries, including over 50 from China, to its black export list. This radical decision aims to restrict Beijing’s access to advanced technologies with potential military applications.

Details of the Blacklist Announcement

Announced on Tuesday by the Bureau of Industry and Security (BIS), this decisive action targets organizations engaged in critical sectors such as artificial intelligence, high-performance computing, quantum technologies, and unmanned aerial vehicles (UAVs). The new restrictions will prohibit American companies from exporting specific technologies of American origin to these named entities without obtaining a special license.

Impact of Escalated Trade Tensions

This latest update marks the first significant decision of its kind during the Trump administration and comes amid rising trade tensions between Washington and Beijing. As the United States strives to close loopholes that have allowed Chinese companies to access advanced technologies via intermediaries, this development seeks to ensure national security.

Key Targets of the Restrictions

The blacklist includes various entities with specific concerns:

• 12 entities (11 in China, 1 in Taiwan) involved in the development of advanced AI and high-performance computing chips linked to the Chinese military.
• 27 Chinese companies have attempted to acquire American-origin technologies to support China’s military modernization, including its hypersonic weapons program.
• Seven entities based in China are working on quantum technologies, which pose significant risks to U.S. national security.
• Two entities providing products to previously sanctioned Chinese tech giants Huawei and Hisilicon.
• 13 entities primarily from China are linked to nuclear activities, with seven others associated with ballistic missile programs.
• Ten entities located in China, South Africa, and the United Arab Emirates are connected with organizations in South Africa previously blacklisted for training Chinese military pilots.
• Two entities in Iran and China are attempting to procure American products for Iranian UAV and defense programs.

China’s Reaction to the Export Restrictions

The response from Beijing was swift and critical. The Beijing Academy of Artificial Intelligence, among those named, expressed shock and strong opposition to its inclusion, deeming it an unfounded action. The Chinese Foreign Ministry condemned the U.S. for “abusing” national security justifications and accused it of “hegemonism” and violations of international law. Beijing has also signaled its intention to take necessary measures to protect the interests of Chinese companies.

Broader Strategy of Technology Control

This blacklist formation is part of a broader American strategy designed to limit China’s access to essential technologies with dual-use potential—those applicable for both civilian and military purposes. This initiative particularly targets areas such as AI chips, supercomputers, and semiconductors, and represents a continuation of earlier restrictions on companies like NVIDIA and AMD. The move signifies a critical response to China’s progress in AI development driven by low-cost, open-source models like those produced by DeepMind.

Implications for International Trade

The new regulations also include invoking foreign direct product rules, enabling the U.S. to restrict the re-exports and transfers of foreign goods that incorporate American-origin technology. This approach aims to tighten controls around intermediate countries and transit centers that facilitate the passage of sensitive technologies, thus bolstering U.S. national security.