US Adds 80 Chinese Companies to Export Restriction List

Includes Cloud Companies Previously Trading with NVIDIA

Aims to Limit High-Performance Computing, Quantum Technology, Advanced AI Development

The United States has added 80 companies and research institutes, including subsidiaries of Inspur Group, a cloud computing and big data service provider among Chinese companies, to its export restriction list.

According to Reuters on the 26th (local time), the US Department of Commerce announced that Inspur affiliates were involved in the development of supercomputers for the Chinese military, adding six subsidiaries to the export restriction entity list. Five of the subsidiaries are in China, and one is in Taiwan. Inspur Group itself has been on the list since 2023.

The company's business units are located in more than 50 locations in China, but it also has subsidiaries in Taiwan, Iran, Pakistan, South Africa, and the United Arab Emirates.

The US government's addition to the export restriction list aims to limit China's high-performance computing capabilities, quantum technology, and advanced AI development.

Commerce Secretary Howard Lutnick stated, "We will not allow adversaries to use US technology to strengthen their military."

China's Ministry of Foreign Affairs condemned the US move on the 26th and stated that it would take necessary measures to protect the legitimate rights and interests of Chinese companies.

The US is also aiming to block Iran's procurement of drones and related defense items and to prevent the development of ballistic missile programs and unsafe nuclear activities.

The US government selects companies for the export restriction entity list based on national security and foreign policy judgments. US companies cannot sell goods to companies on the entity list without permission.

Commerce Department official Jeffrey Kessler stated that the goal of the export restrictions is to prevent the misuse of US technology and goods in high-performance computing, hypersonic missiles, military aircraft training, and UAVs (drones) that threaten national security.

Inspur Group has previously traded chips with NVIDIA and AMD. When Inspur Group was included in the entity list in 2023, these companies reviewed whether to suspend supplies to its subsidiaries. It is not known whether the transactions were subsequently halted.

The newly added companies include Chinese companies Netrix Information Industry, Suma Technology, and Suma-USI Electric. These companies were added for their contributions to China's exascale supercomputer development. They are also accused of providing manufacturing technology to Sugon. Sugon was added to the entity list in 2019 for manufacturing supercomputers used by the Chinese military, according to the Department of Commerce.

Companies accused of supplying US products to Huawei and others to enhance China's quantum technology capabilities were also added to the list.

The Beijing Academy of Artificial Intelligence (BAAI), a non-profit research institution in China included in the list, demanded on the 26th that the US department retract its erroneous decision.

Guest reporter Kim Jung-ah kja@hankyung.com