WASHINGTON, April 10 (Reuters) - The United States is
adding four Chinese companies to an export blacklist for seeking
to acquire AI chips for China's military, a U.S. official said
on Wednesday.
The companies are "involved with providing AI chips to
China's military modernization programs" and military
intelligence users, the Commerce Department's Kevin Kurland, an
export enforcement official, said at a U.S. Senate subcommittee
hearing on strengthening export control enforcement.
The companies are among 11 additions to the Commerce
Department Entity List posted by the government on Wednesday.
Suppliers need licenses, likely to be denied, to ship goods and
technology to companies on the list.
According to the posting on the Federal Register, four
Chinese entities were added for acquiring and attempting to
acquire U.S. items in support of China's military modernization
efforts. The posting did not detail the reason.
The companies are LINKZOL (Beijing) Technology Co, Xi'an
Like Innovative Information Technology Co, Beijing Anwise
Technology Co and SITONHOLY (Tianjin) Co.
China opposes the U.S. abusing the list and other export
control tools to "contain and suppress" Chinese companies,
foreign ministry spokesperson Mao Ning told a regular news
briefing on Thursday.
It urged the U.S. to stop politicizing trade and technology
issues and would take the necessary steps to safeguard its
rights and interests, she added.
In the posting, the United States also restricted exports to
five companies that it said were helping produce and procure
drones for use by Russia in Ukraine and by Iran-backed Houthis
in Red Sea shipping attacks.
Russia has intensified its drone and missile strikes against
Ukrainian energy facilities in recent weeks, causing significant
damage and threatening a repeat of the blackouts experienced in
the first year after Russia invaded Ukraine in February 2022.
The Commerce Department added China's Jiangxi Xintuo
Enterprise Co to the list for supporting Russia's military
through the procurement, development, and proliferation of
Russian drones, the posting said.
Another Chinese company, Shenzhen Jiasibo Technology Co, was
added for being part of a network procuring aerospace
components, including drone applications, for an aircraft
company in Iran. Three Russian entities - Aerosila JSC SPE,
Delta-Aero LLC, and JSC ODK-Star - were added for being part of
that network.
"These components are used to develop and produce
Shahed-series UAVs which have been used by Iran to attack oil
tankers in the Middle East and by Russia in Ukraine," the
Federal Register notice said, referring to unmanned aerial
vehicles.
Chinese foreign ministry said normal economic cooperation
between China and Russia should not be disrupted or restricted.
"We always oppose the U.S.'s unilateral and illegal sanctions,"
Mao said.
Attacks on ships including oil tankers by Iranian-backed
Houthis have disrupted global shipping through the Red Sea.
Yemen's Houthis say they are retaliating against Israel's war
against Palestinian Hamas militants in Gaza.
Companies are added to the U.S. Entity List when Washington
deems them a threat to U.S. national security or foreign policy.
Two UAE citations, Khalaj Trading LLC and Mahdi Khalaj
Amirhosseini, were added for apparently violating Iran sanctions
by exporting or trying to export items from the United States to
Iran through UAE, according to the posting.
The companies could not be reached for comment.
U.S.-Chinese military contacts resumed late last year but
tensions continue due to fundamental differences over Taiwan and
the South China Sea that remain dangerous potential flashpoints.
Chinese leader Xi Jinping has pumped billions into buying
and developing equipment as part of his modernizing efforts to
build a "world-class" military by 2050, with Beijing's outsized
defense budget growing at a faster pace than the economy for
some years.