Saturday, July 13, 2024

US blacklists 4 Chinese tech companies for helping China’s military

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Amid escalating tensions between the US and China, the US Commerce Department has blacklisted four Chinese companies for supplying artificial intelligence (AI) chips for China’s military modernisation programmes, according to a report in The Times of India.

This 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 include Linkzol (Beijing) Technology Co, Xi’an Like Innovative Information Technology Co, Beijing Anwise Technology Co, and SITONHOLY (Tianjin) Co. These companies were part of the 11 new additions to the Commerce Department Entity List this week.

Preventive measures of US govt

The list serves as one of the measures used by the US government to prevent sensitive American goods and technology from reaching unauthorised entities. Additionally, the US has implemented broad restrictions on exporting advanced semiconductors and chip-making equipment to China to prevent the transfer of US technology to support China’s military modernisation efforts.

According to a report in the Reuters, 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.

However, China refuted these allegations, asserting that the US is attempting to suppress Chinese firms. Rejecting the claims made by the US, China’s Foreign Ministry spokesperson Mao Ning said that the US is attempting to ‘contain and suppress’ Chinese companies.

US restricts exports to five firms

The US further limited exports to five other companies accused of facilitating drone production and procurement for Russia’s involvement in the conflict in Ukraine and Iranian actions in the Red Sea. 

The TOI reported that among these five companies was Jiangxi Xintuo Enterprise Co, a Chinese firm linked to backing Russia’s drone initiative, as well as a network of companies providing drone components to Iran.

The report stated that following the US’s actions, China condemned its actions saying they disrupt regular economic cooperation with Russia. These recent developments highlight the intricacies of economic and geopolitical relations between the two major global powers, amid ongoing tensions between the US and China.

First Published: Apr 13 2024 | 2:14 PM IST

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