The US government has added a few Chinese companies to its already extensive blacklist for allegedly “supporting China’s military modernization”.
Inspur Group Co Ltd and Loongson Technology became the twenty-seventh and twenty-eighth entities to be added to the Chinese portion of the list earlier this month.
While the list does not explicitly state how these entities are connected to the Chinese military, every company in China is required to abide by the decisions of the Chinese government, and as such, those of the military.
US bans more Chinese companies
Inspur claims to be China’s leading cloud computing, big data service provider with focus on cloud data centers, cloud services and big data, smart city and smart enterprises, providing its services to governments and other agencies in more than 100 countries and regions.
The company has worked with many of the top Western and global computer companies, including IBM, Cisco, Microsoft, Intel and AMD, making the timing of the decision somewhat confusing.
Loongson is a company best known for the chips it produces, which are said to be enough to rival the latest Intel and AMD offerings.
Going forward, all US-based hardware, software and services companies, or foreign companies using US technologies, will be required to apply for a US export license, which will reportedly be denied by default unless otherwise positively reviewed.
The move is likely to further heighten tensions as the two giant economies collide in a technology war that has become more apparent in recent years.
The entity list (opens in new tab) includes organizations “for which there are reasonable grounds to believe, on the basis of specific and demonstrable facts, that the rightholders have engaged in, are engaged in, or pose a significant risk of engaging in or becoming involved in activities contrary to national law security or foreign policy interests of the United States”.
Currently, 28 of the 38 entries on the list are from the People’s Republic of China, with other entries from Pakistan, Burma, Belarus, Russia and Taiwan in order of importance.