(Image Source: Photo by Lin Zhijia, TMTPost AGI Editor)

AsianFin – The U.S. Department of Commerce expanded its trade restrictions on Chinese technology firms, adding 54 Chinese AI and quantum computing companies to the "Entity List". 

The decision, published in the Federal Register on Tuesday local time, is set to take effect on Friday.

The Bureau of Industry and Security (BIS), an agency in the U.S. Department of Commerce, issued two documents listing companies and institutions that will face stringent export restrictions.

In document 2025-05427, 12 Chinese firms related to AI large models, supercomputing, and servers were added, including the Beijing Academy of Artificial Intelligence (BAAI), Ningchang Information Industry, and Suma, a server brand under China Electronics Corporation. Several subsidiaries of Inspur Information, spanning mainland China, Hong Kong, and Taiwan, were also listed.

Document 2025-05426 added approximately 80 entities from multiple countries, including 42 from China. Among them are Beijing Guoke Tianxun Technology Co., Ltd., Beijing Graphene Institute Co., Ltd., and the Center for Space Application Engineering and Technology under the Chinese Academy of Sciences. The BIS cited "supporting China's quantum technology development" as a key reason for adding entities such as Saihao Instruments, Anhui Kehua Trade, and Chongqing Southwest Integrated Circuit Design Co., Ltd.

According to the BIS, companies listed on the Entity List must obtain a special license for any U.S.-origin items under the Export Administration Regulations, with applications reviewed under a "presumption of denial" policy.

U.S. Commerce Secretary Howard Lutnick emphasized national security concerns, saying, "We will not allow adversaries to leverage American technology to bolster their own capabilities and pose a threat to the American people."

Established in 2018, BAAI is a leading AI research institution. The BIS accused BAAI of attempting to acquire U.S.-origin items to develop advanced AI models and computing chips, citing national security risks.

Six subsidiaries of Inspur, a major cloud computing and server company, were added to the list. The BIS claims Inspur sought U.S. technology for Chinese supercomputing projects. This move follows the group's initial listing in March 2023, which disrupted its partnerships with Intel, AMD, and Nvidia.

Ningchang Information Industry and Suma were added due to their involvement in China's exascale supercomputer development. These firms are linked to Sugon, which has been on the Entity List since 2019.

Companies such as Anhui Kehua Trade and Beijing Guoke Tianxun were sanctioned for their role in China's quantum advancements and hypersonic weapons research.

This is the first Entity List expansion under the new Trump administration, though previous U.S. policies have already blacklisted hundreds of Chinese firms. As of October 31, 2024, the BIS had 3,870 entities on its restricted list, with 1,012 from China, accounting for 26.1%.

Some entities in this expansion are marked with "Footnote 4," meaning U.S. licensing rules apply even to certain foreign-made products derived from U.S. technology, under the Foreign Direct Product Rule (FDPR).

Jeffrey Kessler, Deputy Secretary of Commerce for Industry and Security, stated that the Entity List is a crucial tool to prevent adversaries from exploiting U.S. technology for "malicious purposes" in fields like high-performance computing, hypersonic missiles, and drones.

 Chinese Foreign Ministry spokesperson Guo Jiakun denounced the move as economic coercion and trade weaponization, asserting that no sanctions will hinder China's technological progress.

The Chinese Embassy in Washington also issued a statement on Tuesday, urging the U.S. to "immediately cease using military issues as an excuse to politicize, instrumentalize, and weaponize trade and technology policies."

Below is the information on Chinese entities included in the BIS export control list for this round:

1. Beijing Academy of Artificial Intelligence;
2. Beijing Innovation Wisdom Technology Co., Ltd.;
3. Henan Dingxin Information Industry Co., Ltd.;
4. Inspur (Beijing) Electronic Information Industry Co., Ltd.;
5. Inspur Electronic Information Industry Co., Ltd.;
6. Inspur Electronic Information (Hong Kong) Co., Ltd.;
7. Inspur (HK) Electronics Co., Ltd.;
8. Inspur Software Co., Ltd.;
9. Aeronautics Computing Technique Research Institute;
10. Aerospace Star Technology Application Co., Ltd.;
11. Air Force Engineering University;
12. Anhui Kehua Sci-Tech Trading Co., Ltd.;
13. Associated Opto-electronics (Chongqing) Co., Ltd.;
14. Beijing Foundfresh Technology Co., Ltd.;
15. Beijing Graphene Institute Co., Ltd;
16. Beijing Guoke Tianxun Technology Co., Ltd.;
17. Chengdu Aircraft Design and Research Institute;
18. China Academy of Launch Vehicle Technology Beijing Institute of Precision Mechatronics Control Equipment;
19. China Aeronautical Radio Electronics Research Institute;
20. Chinese Academy of Sciences Technology and Engineering Center for Space Utilization;
21. Chongqing Southwest Integrated Circuit Design Co., Ltd.;
22. Gyro Technology Co., Ltd.;
23. Harbin Aerospace Star Data System Technology Co., Ltd.;
24. Jiangxi Hongdu Aviation Industry Group Co., Ltd.;
25. Mohammad Reza Rajabi;
26. Nanjing Chunhui Technology Industry Co., Ltd.;
27. Nanjing Fiberglass Research and Design Institute;
28. Nanjing Panda Handa Technology Co., Ltd.;
29. National Inspection and Testing Holding Group Nanjing National Materials Testing Co., Ltd.;
30. Ningbo Institute of Materials Technology and Engineering;
31. ORICAS Import and Export (Beijing) Corporation;
32. Physike Technology Co., Ltd.;
33. Scikro (Hong Kong) Instruments Limited;
34. Scikro (Shanghai) Instrument Co., Ltd.;
35. Shaanxi Aerospace Science and Technology Co., Ltd.;
36. Shanghai Aviation Electronic Co., Ltd.;
37. Silk Road Trading Company Ltd.;
38. Singleton (Suzhou) Electronics Technology Co., Ltd.;
39. Space Star Technology Co., Ltd.;
40. Stratum FT Limited;
41. Suzhou Changfeng Avionics Co., Ltd.;
42. Suzhou SIP Hi-Tech Precision Electronics Co., Ltd.;
43. Tianjin Aerospace Zhongwei Data System Technology Co., Ltd.;
44. Xi’an Aerospace Automation Co., Ltd.;
45. Xi’an Aerospace Tianhui Data Technology Co., Ltd.;
46. Xi’an Sunward Aeromat Co., Ltd.;
47. Xi’an Xiangteng Microelectronics Technology Co., Ltd.;
48. Xi’an Xiangxun Technology Co., Ltd.;
49. Zhejiang Aerospace Hengjia Data Technology Co., Ltd.;
50. Zibo Topred International Trading Company Limited.
51. Nettrix Information Industry Co., Ltd.;
52. Suma Technology Co., Ltd.;
53. Suma-USI Electronics Co., Ltd.
54. Inspur Taiwan.