The Trump administration is reportedly delaying the trade blacklist designation for over 100 Chinese companies, including the artificial intelligence startup DeepSeek and memory semiconductor firm ChangXin Memory Technologies (CXMT), which have been identified as national security threats.
According to Reuters, multiple sources familiar with the matter indicated on June 16 that DeepSeek and CXMT had already been approved for inclusion on the U.S. Commerce Department's Entity List after undergoing review by relevant agencies last year. However, the department has postponed the final announcement, preventing these companies from being officially listed.
The Entity List restricts U.S. companies from exporting goods, software, and technology to specific firms, effectively serving as a trade blacklist.
Sources noted that the Trump administration is delaying the public release of this list to avoid escalating tensions with China. Since October of last year, no new companies have been added to the Entity List, marking the longest hiatus in over a decade, according to Reuters.
Kevin Kurland, a former official at the Commerce Department, criticized the lack of new additions, stating, "The fact that no companies have been added to the Entity List since October shows that trade policy is overshadowing the use of important national security tools."
Philip Luck, a global supply chain expert at the Center for Strategic and International Studies (CSIS), remarked, "The Entity List is like a game of whack-a-mole; you have to keep hitting the moles. The delay in listing is increasing the risk of U.S. technology flowing into adversarial hands."
DeepSeek, a Chinese AI startup, made waves in the global tech industry last year with its low-cost AI models. A senior official from the U.S. State Department previously claimed to Reuters that DeepSeek had supported activities of the Chinese military and intelligence agencies and attempted to illegally access advanced U.S. semiconductors through shell companies in Southeast Asia.
CXMT, China's largest memory semiconductor manufacturer, was designated as a military-related company by the U.S. Department of Defense during the Biden administration. Reports indicate that the Commerce Department has been considering adding CXMT to the Entity List for over a year.
Additionally, Chinese companies that supplied parts for Russian drones recovered in Poland last year, as well as those that sold restricted Nvidia semiconductors to Chinese universities, and firms manufacturing and selling military drones and robotic dogs for the Chinese military are also reportedly under consideration for sanctions.
Sources stated that at least 75 Chinese companies and institutions involved in advanced semiconductor production, semiconductor manufacturing equipment, and AI modeling have been classified as candidates for the blacklist after undergoing agency reviews.
The Bureau of Industry and Security (BIS) at the Commerce Department did not directly respond to inquiries regarding the lack of new listings or the status of DeepSeek and CXMT. However, it stated in a release, "We are using a variety of policies and enforcement tools, including the Entity List, daily to respond to malicious actors."
China has expressed opposition to U.S. export control measures. According to Xinhua News Agency, Chinese Foreign Ministry spokesperson Lin Jian stated during a regular briefing on June 17 that China consistently opposes the U.S. expanding the concept of national security and abusing export control measures, including the Entity List, to suppress Chinese companies.
He urged the U.S. to cease politicizing, weaponizing, and instrumentalizing economic, trade, and scientific issues.
* This article has been translated by AI.
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