U.S. Targets China’s AI and Supercomputing Push

U.S. targets China’s AI and supercomputing push

The U.S. has blacklisted approximately 80 foreign entities, citing heightened national security concerns. The majority are Chinese companies suspected of procuring American hardware to aid the development of military technologies.

Eleven entities based in China and one in Taiwan now face trade restrictions for “engaging in the development of advanced AI, supercomputers, and high-performance AI chips for China-based end-users with close ties to the country’s military-industrial complex,” according to the U.S. Bureau of Industry and Security.

Loopholes and legal maneuvers under scrutiny

Similarly, the Biden administration added the Inspur parent company to the Entity List in 2023. However, U.S. organisations like Intel and IBM resumed business with its subsidiaries not long after. Inspur Electronic Information — now blacklisted as of this week — quickly changed its registered address to a location roughly two kilometres away from its parent company, in a possible attempt to circumvent restrictions.

The Beijing Academy of Artificial Intelligence and Beijing Innovation Wisdom were both added to the list for developing large-scale AI models and advanced computing chips to support China’s military modernization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” U.S. Secretary of Commerce Howard Lutnick said in a statement.

U.S. targets China’s AI and supercomputing push

The list of newly blacklisted entities also included companies from Iran, Pakistan, South Africa, and the United Arab Emirates. The U.S. aims to disrupt Iran’s acquisition of drones and military technologies, block the development of unsafeguarded nuclear and ballistic weapons programs in Iran and Pakistan. Additionally, it seeks to block the Test Flying Academy of South Africa from using U.S. technology to train the Chinese military.

Nettrix and Inspur Group have both been targeted by U.S. restrictions in the past but largely escaped significant operational setbacks. Nettrix was started by former executives of Sugon, a server manufacturer with ties to the Chinese military and government surveillance through the Chinese Academy of Sciences.

When the U.S. imposed restrictions on Sugon in 2019, the company’s leadership formed Nettrix using Sugon’s technology and customer base, which included Nvidia, Intel, and Microsoft — effectively allowing the business to continue under a new name, according to The New York Times. Henan Dingxin and the two Suma entities have also been linked to Sugon by providing manufacturing support.

The BIS said that adding the Chinese entities to the Entity List will restrict the Chinese Communist Party’s capability to develop high-performance and exascale computing systems — machines that can perform complex simulations and analyze massive datasets — as well as quantum technologies and hypersonic weapons.

Entities named include the Beijing Academy of Artificial Intelligence, Beijing Innovation Wisdom, Henan Dingxin, Nettrix, Suma Technology, Suma-USI Electronics, and six subsidiaries of Inspur Group. All of them are now barred from purchasing U.S. goods without a government-issued license.

Conclusion

The U.S. has taken a strong stance against China’s AI and supercomputing push, blacklisting 80 foreign entities and restricting their access to U.S. technology. The move is aimed at preventing the exploitation of American technology for military purposes and to protect national security.

FAQs

Q: What is the purpose of the U.S. restrictions on Chinese entities?

A: The restrictions are aimed at preventing the exploitation of American technology for military purposes and to protect national security.

Q: Which entities have been blacklisted by the U.S.?

A: Eleven entities based in China and one in Taiwan have been blacklisted, including the Beijing Academy of Artificial Intelligence, Beijing Innovation Wisdom, Henan Dingxin, Nettrix, Suma Technology, Suma-USI Electronics, and six subsidiaries of Inspur Group.

Q: What is the Entity List?

A: The Entity List is a list of entities that are subject to certain restrictions and requirements when purchasing U.S. goods and technology.

Q: How will the U.S. restrictions impact China’s AI and supercomputing capabilities?

A: The restrictions will restrict China’s capability to develop high-performance and exascale computing systems, as well as quantum technologies and hypersonic weapons.