China expressed strong disapproval on Wednesday following the decision by the United States to expand its export control list, which now includes nearly 80 companies. Among these, over 50 firms based in China have been targeted due to their pursuit of advanced technologies in supercomputing, artificial intelligence, and quantum technology, allegedly for military use.
The expanded list from the U.S. Commerce Department’s Bureau of Industry and Security also features companies from Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates. Notable among the additions are six subsidiaries of the Inspur Group, a prominent Chinese cloud computing and big data service provider that was listed by the U.S. government in 2023.
This update further includes the Beijing Academy of Artificial Intelligence, which has expressed strong opposition. In a statement, the institution remarked, “We are shocked that a private non-profit scientific research institution has been added to the entity list. We strongly oppose this wrong decision without any factual basis and ask the relevant U.S. departments to withdraw it.”
A review committee indicated that the Beijing Academy of Artificial Intelligence and another firm, Beijing Innovation Wisdom Technology Co., were deemed to have developed significant AI models and advanced computer chips intended for military applications.
China’s Foreign Ministry was quick to respond, condemning the entity list and other export controls as measures aimed to unduly suppress Chinese businesses. “It seriously violates international law and basic norms of international relations, severely damages the legitimate rights and interests of enterprises, and undermines the security and stability of global supply chains. China firmly opposes and strongly condemns this,” remarked ministry spokesperson Guo Jiakun during a routine news briefing on Wednesday.
The U.S. moves are part of an effort to constrain China’s ability to procure and develop ultra-fast supercomputers, notably “exascale” computers, for the purpose of hypersonic weapon development and other sensitive technologies. Additionally, the Bureau of Industry and Security intended to prevent South Africa’s Test Flying Academy from employing U.S. goods to train Chinese military personnel, curb Iran’s access to drones and other military technologies, and impede the development of insecure nuclear and ballistic missile programs.
Companies listed are subject to the Bureau’s “foreign direct product rule,” which allows for control over reexports and transfers of foreign-made products containing technology deemed vital for U.S. national security.
These control measures coincide with preparations by the Trump administration for another round of tariff increases, set to occur next week. This represents a further escalation in the trade conflict initiated by President Donald Trump during his first term. Trump has increased tariffs on Chinese imports to 20%, with plans to impose a 25% tariff on imports from any nation purchasing oil or gas from Venezuela—China being a major buyer of Venezuelan oil.
In response, China has enacted its own countermeasures, which include broad new duties on various American goods and an antitrust investigation into Google. Concurrently, China is tightening its sanctions laws, with legislation that permits the freezing of assets belonging to companies subject to Chinese sanctions.