Amid escalating tensions between the United States and China, the US Commerce Department has taken action by blacklisting four Chinese companies for their alleged involvement in supplying artificial intelligence (AI) chips to China‘s military modernization efforts. This move comes as part of the US government’s efforts to prevent sensitive American technology from being used for military purposes in China.

The blacklisted companies, including Linkzol (Beijing) Technology Co, Xi’an Like Innovative Information Technology Co, Beijing Anwise Technology Co, and SITONHOLY (Tianjin) Co, were among 11 additions to the Commerce Department Entity List this week. Being placed on this list makes it significantly challenging for these companies to access American goods and technology.

According to Kevin Kurland, an export enforcement official, the banned companies were involved in acquiring US AI chips for Chinese military applications, prompting the US to impose restrictions on exports of advanced semiconductors and chip-making equipment to China.

China, however, vehemently denied the allegations, with Foreign Ministry spokesperson Mao Ning dismissing them as attempts to “contain and suppress” Chinese companies. China vowed to take “necessary steps” to safeguard its interests in response to the US actions.

Additionally, the US imposed export restrictions on five other companies accused of aiding drone production for Russia’s involvement in Ukraine and Iranian attacks in the Red Sea. Among these companies was Jiangxi Xintuo Enterprise Co, a Chinese firm allegedly supporting Russia’s drone program, along with a network of companies supplying drone components to Iran.

China condemned the US measures, arguing that they disrupt normal economic cooperation with Russia. As tensions continue to simmer between the US and China, these latest developments underscore the complexities of economic and geopolitical relations between the two global powers.with TOI inputs