The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities.
The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.”
Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization.
Photo: Reuters
“We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said.
The entities targeted include 11 based in China and one in Taiwan, accused of engaging in the development of advanced AI, supercomputers and high-performance AI chips for China-based users “with close ties to the country’s military-industrial complex.”
They include the Beijing Academy of Artificial Intelligence (北京人工智能研究院) and subsidiaries of information technology giant Inspur Group (浪潮集團).
Others were included for “contributions to unsafeguarded nuclear activities” or ballistic missile programs.
The aim is to prevent US technologies and goods from being misused for activities like high-performance computing, hypersonic missiles and military aircraft training, US Undersecretary of Commerce for Industry and Security Jeffrey Kessler said.
Two entities in Iran and China were also added to the list for seeking to procure US items for Iran’s defense industry and drone programs, the commerce department said.
Beijing condemned the blacklisting of its firms, accusing Washington of “weaponizing” trade and technology in a “typical act of hegemonism.”
“We urge the US side to stop generalizing the concept of national security... and stop abusing all kinds of sanctions lists to unreasonably suppress Chinese enterprises,” Chinese Ministry of Foreign Affairs spokesman Guo Jiakun (郭嘉昆) said at a daily news conference.
China would take “necessary measures” to defend its firms’ rights, Guo added.
Meanwhile, Taiwan would investigate why the Taiwanese subsidiary of Inspur Group, China’s leading cloud computing and big data service provider, was added to the trade blacklist, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday.
Inspur Taiwan, located in New Taipei City’s Banciao District (板橋), is also known by the names Number Media Ltd (數字雲端) and Inspur Taiwan — R&D Center (台灣浪潮 -研發中心).
The ministry would “quickly investigate” the company’s situation, including what US regulations it is accused of breaching, Kuo said.
If the company acted illegally, the government would impose penalties, he said.
The government has been working with companies to confirm the end user of their products, and ensure that they are not inadvertently breaching trade rules, he added.
Additional reporting by CNA
PERSISTENT RUMORS: Nvidia’s CEO said the firm is not in talks to sell AI chips to China, but he would welcome a change in US policy barring the activity Nvidia Corp CEO Jensen Huang (黃仁勳) said his company is not in discussions to sell its Blackwell artificial intelligence (AI) chips to Chinese firms, waving off speculation it is trying to engineer a return to the world’s largest semiconductor market. Huang, who arrived in Taiwan yesterday ahead of meetings with longtime partner Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), took the opportunity to clarify recent comments about the US-China AI race. The Nvidia head caused a stir in an interview this week with the Financial Times, in which he was quoted as saying “China will win” the AI race. Huang yesterday said
Japanese technology giant Softbank Group Corp said Tuesday it has sold its stake in Nvidia Corp, raising US$5.8 billion to pour into other investments. It also reported its profit nearly tripled in the first half of this fiscal year from a year earlier. Tokyo-based Softbank said it sold the stake in Silicon Vally-based Nvidia last month, a move that reflects its shift in focus to OpenAI, owner of the artificial intelligence (AI) chatbot ChatGPT. Softbank reported its profit in the April-to-September period soared to about 2.5 trillion yen (about US$13 billion). Its sales for the six month period rose 7.7 percent year-on-year
MORE WEIGHT: The national weighting was raised in one index while holding steady in two others, while several companies rose or fell in prominence MSCI Inc, a global index provider, has raised Taiwan’s weighting in one of its major indices and left the country’s weighting unchanged in two other indices after a regular index review. In a statement released on Thursday, MSCI said it has upgraded Taiwan’s weighting in the MSCI All-Country World Index by 0.02 percentage points to 2.25 percent, while maintaining the weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, at 20.46 percent. Additionally, the index provider has left Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index unchanged at 23.15 percent. The latest index adjustments are to
CRESTING WAVE: Companies are still buying in, but the shivers in the market could be the first signs that the AI wave has peaked and the collapse is upon the world Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported a new monthly record of NT$367.47 billion (US$11.85 billion) in consolidated sales for last month thanks to global demand for artificial intelligence (AI) applications. Last month’s figure represented 16.9 percent annual growth, the slowest pace since February last year. On a monthly basis, sales rose 11 percent. Cumulative sales in the first 10 months of the year grew 33.8 percent year-on-year to NT$3.13 trillion, a record for the same period in the company’s history. However, the slowing growth in monthly sales last month highlights uncertainty over the sustainability of the AI boom even as