U.S. Broadens Crackdown On Chinese Tech Firms

The US has announced export restrictions for dozens of Chinese entities, including server maker Inspur Group and units of genetics firm BGI Research, citing activities contrary to US national security or foreign policy interests, Bloomberg News reported.

Photo Insert: Among the notable additions is Inspur Group, the state-affiliated maker of computer servers that has benefited from giant data center construction nationwide.

The commerce department added more companies to the so-called Entity List for acquiring and attempting to acquire US-origin items in support of China’s military modernization efforts.

The department also cited companies providing support to Russia’s military.

Among the notable additions are Inspur Group, the state-affiliated maker of computer servers that has benefited from giant data center construction nationwide, and Beijing-based CPU maker Loongson.

Both are regarded as integral to the government’s effort to replace foreign-made technology and propel domestic innovation.

Loongson is considered a potential alternative in future for Intel chips, while Inspur competes directly with servers made by the likes of HP and Dell Technologies. US companies are banned from exporting to the listed entities without prior government approval.

The commerce department’s Bureau of Industry and Security (BIS) revealed that the sanctions that cover Inspur are similar to those imposed on Huawei Technologies, and apply to US shipments as well as foreign-made items produced with US-origin tools or technology, which effectively means all semiconductors on the planet are covered, said Kevin Wolf, a partner at Akin Gump Strauss Hauer & Feld.

The US has also added BGI Research to the list, a reflection of the administration’s use of the blacklist to address human rights violations. It also included agencies such as the National Research Center for Parallel Computer Engineering and Technology and the Wuxi Institute of Advanced Technology.

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