Thread regarding IBM layoffs

US adds dozens of Chinese entities to export blacklist

Appears Inspur Power Commercial Systems Co. is not explicitly on the list, but Inspur Electronic Information Industry Co. is and they appear to be the unit under which Inspur Power Commercial Systems Co. resides. AK, not sure if you're listening, but is IBM still going to continue it's tie-up with Inspur Power Commercial Systems Co.? (Link to the updated additions to the entities list at bottom of the article).

https://www.ft.com/content/91397064-74d3-466e-b122-00c2726859e0

Published 25 March 2025 | Updated 20:32

The US has put dozens of Chinese entities on an export blacklist in the Trump administration’s first big effort to slow China’s ability to develop advanced artificial intelligence chips, hypersonic we-pons and military-related technology.

The US commerce department on Tuesday added more than 70 Chinese groups to the “entity list”, which requires any American company selling technology to them to have a licence. In most cases, the licence request is denied.

Among the listed groups are six Chinese subsidiaries of Inspur, a big cloud computing group that has worked with US chipmaker Intel, including one based in Taiwan. The Biden administration put Inspur on the entity list in 2023 but came under criticism for not adding its subsidiaries. Inspur did not immediately respond to a request for comment.

The US said the subsidiaries were targeted for helping develop supercomputers for military use and obtaining American-made technology to support projects for China and the People’s Liberation Army. It added that the subsidiaries had developed large AI models and advanced chips for military use.

“We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” said Howard Lutnick, the US commerce secretary.

“We are committed to using every tool at the department’s disposal to ensure our most advanced technologies stay out of the hands of those who seek to harm Americans.”

The US has not provided any public evidence to support the blacklisting of Beijing Academy of Artificial Intelligence for supporting China’s military modernisation. BAAI is a leading non-profit AI research institute set up in 2018 to bring together industry and academia. It regularly releases open source AI models and other tools and holds an annual conference to convene global experts in the field.

The blacklisting of BAAI comes after Washington targeted Zhipu in January. The start-up is a frontrunner among Chinese AI groups developing large language models. BAAI did not immediately respond to a request for comment.

In most cases, the restrictions will apply to non-US companies that export products containing American technology to the Chinese groups under an extraterritorial tool known as the “foreign direct product rule”.

The US also targeted four groups — Henan Dingxin Information Industry, Nettrix Information Industry, Suma Technology and Suma-USI Electronics — that are involved in developing exascale superconductors for military purposes, such as nuclear we-pons modelling.

Washington said the groups provided “significant manufacturing capabilities” to Sugon, an advanced computer server-maker put on the entity list in 2019 for building supercomputers for military use.

The Chinese embassy in Washington said the US had “time and again overstretched the concept of national security and abused state power to go after Chinese companies”.

“We firmly oppose these acts taken by the US and demand that it immediately stop using military-related issues as pretexts to politicise, instrumentalise and we-ponise trade and tech issues, and stop abusing export control tools such as entity lists to keep Chinese companies down,” said Liu Pengyu, the embassy spokesperson.

The Biden administration imposed export controls on China targeting quantum computing and AI chips under its “small yard, high fence” policy. But critics accused it of failing to close loopholes that let some Chinese companies avoid restrictions.

Meghan Harris, a semiconductor policy expert at Beacon Global Strategies, said it was telling that the first significant action on export controls “corrects what was viewed as a major gap in the Biden administration’s listing of Inspur, which left major subsidiaries unrestricted”.

“While a solid first action by the Trump team that will be seen as strengthening controls and fixing errors, it’ll take a bit more time to work up the weightier policy decisions,” she added.

Jeffrey Kessler, under-secretary of commerce for industry and security, said his bureau was “sending a clear, resounding message” that the administration would prevent US technology “from being misused for high performance computing, hypersonic missiles, military aircraft training and [Unmanned Aerial Vehicles] that threaten our national security”.

The US also added 10 entities based in China, South Africa and the UAE to the list over links to the Test Flying Academy of South Africa, a flight school that Washington put on the entity list in 2023 after discovering it was hiring western fighter jet pilots, including from the UK, to train Chinese pilots.

https://public-inspection.federalregister.gov/2025-05427.pdf

[Also, previous related post: @OP+1jgztr591 ]

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WSJ's coverage:

Trump Takes Tough Approach to Choking Off China’s Access to U.S. Tech --

https://www.wsj.com/tech/trump-takes-tough-new-approach-to-choking-off-chinas-access-to-u-s-tech-973f594a

By: Liza Lin
March 26, 2025 6:35 am ET

The Trump administration demonstrated that it wants tougher limits on China’s access to American technology than those introduced by the Biden administration, targeting Chinese companies including a server maker that buys Nvidia chips.

The U.S. on Tuesday added dozens of Chinese companies to a trade blacklist over national security concerns. American businesses seeking to sell technology to these companies will need approval from the government.

Among those added were subsidiaries of Inspur Group, China’s largest server maker and a major customer for U.S. chip makers such as Nvidia, Intel and Advanced Micro Devices. Companies linked to China’s largest supercomputer maker, Sugon, were also added.

The move is the clearest signal yet that the Trump administration intends to further limit what kind of American technology Chinese companies can buy, despite complaints from Silicon Valley companies, including Nvidia, that former President Joe Biden already went too far.

In the Biden administration’s final days, it imposed limits on third countries buying cutting-edge American chips, hoping to prevent those chips from making their way to China. U.S. tech executives have asked President Trump to roll back those limits before they take effect in May.

The latest export controls add to friction between the world’s two largest economies. Since he took office, Trump has imposed cumulative new tariffs on China of 20%, on top of the levies imposed during his first term.

Nearly 80 companies were put on the Commerce Department’s blacklist, known as the entity list. The bulk of them are Chinese. The department said it acted to limit China’s access to high performance computing for military applications and stymie the development of its hypersonic we-pons program.

“American technology should never be used against the American people,” said Jeffrey Kessler, the head of the department’s Bureau of Industry and Security.

A spokesman for China’s Foreign Ministry on Wednesday called the U.S. action “typical hegemonic behavior that severely violates international law.”

Until now, the U.S. has in general allowed affiliates of entity-listed Chinese companies to purchase controlled technology provided the affiliates themselves aren’t listed.

The Wall Street Journal reported two years ago that a subsidiary of Inspur Group called Inspur Electronic Information Industry could still buy American technology even though the parent was on the entity list.

On Tuesday, six Inspur affiliates including Inspur Electronic were added to the list. The U.S. said the affiliates were contributing to China’s development of supercomputers for military end use.

According to business-intelligence firm WireScreen, U.S. server maker Aivres Systems is wholly owned by Inspur Electronic. The latter is one-third owned by Inspur Group, according to corporate records.

Aivres has been assembling high-end artificial-intelligence equipment for Nvidia. The AI-chip giant has said that Aivres will make servers using chips in the Blackwell family, Nvidia’s newest and most powerful processors.

Aivres advertises on its website that it sells servers and infrastructure powered by Blackwell chips, which are banned from sale into China. The Aivres website shows its clients include a U.S. university, a Japanese industrial-camera maker and South Korean AI and internet companies. Aivres says on its site that it complies with export controls.

Nvidia declined to comment on the new U.S. rules or its relationship with Aivres. Inspur didn’t respond to a request for comment.

About two months after Inspur Group was added to the trade blacklist in March 2023, California-based Inspur Systems changed its name to Aivres Systems, according to state business records.

Inspur Electronic, the Aivres parent, works with Nvidia in China, assembling and selling AI infrastructure using certain of Nvidia’s Hopper chips, according to Inspur Electronic’s website. Nvidia tailored those chips for the Chinese market, scaling back their capabilities to comply with U.S. export controls.

In its annual threat assessment published Tuesday, the U.S. intelligence community called China the top military and cyber threat to the U.S. They said Beijing sought to displace the U.S. as the top AI power by 2030. The Chinese foreign ministry spokesman said the report reflected an “outdated Cold War mentality.”

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More reporting on the same:

https://www.reuters.com/world/us/us-adds-dozens-entities-export-restriction-list-2025-03-25/

By: Karen Freifeld and David Shepardson
March 25, 2025 9:00 PM CDT | Updated 4 hours ago

WASHINGTON, March 25 (Reuters) - The U.S. added six subsidiaries of Inspur Group, China's leading cloud computing and big data service provider, and dozens of other Chinese entities to its export restriction list on Tuesday.

The Inspur units were listed for contributing to the development of supercomputers for the Chinese military, the Commerce department said in a posting. Five of the subsidiaries are based in China and one in Taiwan. Inspur Group itself was placed on the list in 2023.

The Inspur units are among about 80 companies and institutes added to the export control list Tuesday. Over 50 are based in China. Others are in Taiwan, Iran, Pakistan, South Africa and the United Arab Emirates.

The listings are intended to restrict China's ability to develop high-performance computing capabilities, quantum technologies and advanced AI, and impede China’s development of its hypersonic we-pons program.

"We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives," said Commerce Secretary Howard Lutnick.

The Chinese embassy in Washington said on Tuesday it "firmly oppose these acts taken by the US and demand that it immediately stop using military-related issues as pretexts to politicize, instrumentalize and we-ponize trade and tech issues."

The U.S. also seeks to disrupt Iran’s procurement of drones and related defense items and prevent development of its ballistic missile program and unsafeguarded nuclear activities.

The government adds companies to the Commerce department's Entity List for national security or foreign policy concerns. Companies cannot sell goods to those listed without applying for and obtaining licenses, which are likely to be denied.

Commerce official Jeffrey Kessler said the administration aims to prevent "U.S. technologies and goods from being misused for high performance computing, hypersonic missiles, military aircraft training, and UAVs (drones) that threaten our national security."

The Inspur Group did not immediately respond to a request for comment.

When Inspur Group was placed on the list in 2023, executives from AMD (AMD.O) and Nvidia (NVDA.O) were questioned about their dealings with the company. At the time, chip industry insiders and their advisers said firms were trying to assess whether they had to halt supplying Inspur's subsidiaries. Reuters could not immediately determine whether the U.S. companies continued to do business with the subsidiaries.

Nvidia declined to comment, and AMD did not immediately respond to a request for comment.

Chinese firms Nettrix Information Industry Co, Suma Technology Co, and Suma-USI Electronics, are among the other companies added to the list. The U.S. said they were added for helping develop Chinese exascale supercomputers, which can process vast amounts of data at very high speeds and conduct large-scale simulations.

The companies also have provided manufacturing capabilities to Sugon, also known as Dawning Information Industry Co (603019.SS), a computer server manufacturer added to the Entity List in 2019 for building supercomputers used by the military, the Commerce department said.

The companies could not immediately be reached for comment.

Other companies were added to the list for acquiring U.S.-origin items to advance China's quantum technology capabilities, and for selling products to companies who supply other listed parties, including Huawei, the tech conglomerate viewed as at the center of China's AI ambitions.

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