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class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p> <main id=\"main\" role=\"main\" tabindex=\"-1\"> <\/p>\n<div class=\"ad ad--top ad--top-mobile\">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<section id=\"stickybar\" class=\"stickybar stickybar--event js-stickybar\">\n<div class=\"stickybar__details\" readability=\"5.12\">\n<div class=\"stickybar__info js-sticky-bar-content\" readability=\"32\">\n<p>Nominations can be submitted for the 2025 CyberScoop 50 awards!<\/p>\n<\/div>\n<p> <a class=\"stickybar__link button button-tertiary\" href=\"https:\/\/cyberscoop.com\/cyberscoop50\/\">Click here!<\/a> <\/div>\n<p> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"25.503080082136\">\n<div class=\"single-article__header-content\" readability=\"34.665887850467\">\n<ul class=\"single-article__eyebrow\">\n<li class=\"single-article__category\"> <a class=\"single-article__category-link\" href=\"https:\/\/cyberscoop.com\/commerce-sanctions-chinese-firms-quantum-computing-ai-cloud\/\"> <span>Geopolitics<\/span> <\/a> <\/li>\n<\/ul>\n<p> The sanctions place the companies under a strict licensing regime meant to limit their access to foundational technology for quantum computing, cloud and AI. <\/p>\n<p>  <br \/>\n<audio id=\"audio-player\" src=\"https:\/\/wp-tts-cdn.api.scpnewsgrp.com\/cyberscoop\/83998\/english.openai.mp3\"><\/audio> <\/p>\n<div readability=\"11\">\n<div>\n<p>Listen to this article<\/p>\n<p>  <\/p>\n<p>0:00<\/p>\n<\/p><\/div>\n<p>  <\/p>\n<p> <span id=\"tts-tooltip\">Learn more.<\/span> <span> This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment. <\/span> <\/p>\n<\/div>\n<p>  <\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"400\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/03\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech.jpg?resize=640%2C400&ssl=1\" class=\"single-article__cover-image wp-post-image\" alt decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/03\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech-2.jpg 2121w, 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https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/03\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech-2.jpg?resize=269,168 269w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/03\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech-2.jpg?resize=539,337 539w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/03\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech-2.jpg?resize=1081,675 1081w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/03\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech-2.jpg?resize=1349,843 1349w\" sizes=\"(max-width: 1081px) 100vw, 1081px\"><figcaption> A semiconductor silicon wafer being tested. (Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"47.502937720329\"><body readability=\"96.824417314095\"><\/p>\n<p>The Commerce Department plans to finalize economic sanctions this week on nearly 20 Chinese and Taiwanese organizations, citing the need to limit their access to U.S. cloud, artificial intelligence and quantum computing technologies.<\/p>\n<p>The sanctions, which will be <a href=\"https:\/\/public-inspection.federalregister.gov\/2025-05427.pdf\">detailed<\/a> and published Friday in the Federal Register , would place additional license requirements on, and limit the availability of, license exceptions for exports, re-exports, and transfers of certain technologies to those entities.<\/p>\n<p>Among the Trump administration\u2019s stated goals for the sanctions are restricting the Chinese government from acquiring high-performance and exascale computing capabilities to build AI systems and quantum computers for military use.<\/p>\n<p>\u201cWe will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,\u201d Commerce Secretary Howard Lutnick said in a statement. \u201cWe are committed to using every tool at the Department\u2019s disposal to ensure our most advanced technologies stay out of the hands of those who seek to harm Americans.\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>The newly added Chinese entities include the Beijing Academy of Artificial Intelligence and Beijing Innovation Wisdom Technology, for acquiring or attempting to acquire U.S. products for AI models, as well as advanced computing chips. Those efforts, the Commerce Department claims, are in support of the Chinese government\u2019s larger military modernization goals.<\/p>\n<p>Six Chinese and Taiwanese subsidiaries of Inspur Group, one of China\u2019s largest cloud computing firms, were also placed on the sanctions list, citing their use of U.S. parts and components in the development of supercomputers for the Chinese military.<\/p>\n<p>Four other Chinese firms \u2014 Henan Dingxin Information Industry, Nettrix Information Industry, Suma Technology and Suma-USI Electronics \u2014 were sanctioned for their alleged development of Chinese exascale supercomputers and providing manufacturing support for Sugan, a previously sanctioned Chinese entity.<\/p>\n<p>The firms were all placed on the Bureau of Industry and Security\u2019s export sanctions list for organizations engaged in \u201cactivities contrary to the national security or foreign policy interests\u201d of the United States. The designation limits the ability of these companies to gain licenses to buy, import or otherwise legally acquire technologies from U.S. firms that may be used to power Beijing\u2019s cloud, AI and quantum computing ambitions.<\/p>\n<p>For certain entities, such as the Beijing Academy of Artificial Intelligence and Beijing Innovation Wisdom Technology, those license reviews will happen with a \u201cpolicy of a presumption of denial.\u201d For others, such as the firms working on exascale supercomputing, the reviews will be done under a \u201cpolicy of denial.\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>A <a href=\"https:\/\/public-inspection.federalregister.gov\/2025-05426.pdf\">separate<\/a> Commerce action set to be finalized Friday places similar sanctions on an additional seven Chinese companies for their work developing quantum computing technologies. Those companies include Scikro (Hong Kong) Instruments, Scikro (Shanghai) Instrument, Anhui Kehua Sci-Tech Trading, Associated Optoelectronics, Chongqing Southwest Integrated Circuit Design, ORICAS Import and Export Corporation, and Physike Technology.<\/p>\n<p>The sanctions are the latest example of bipartisan U.S. efforts to restrict or stop the flow of U.S. technologies and equipment \u2014 such as high-performance computing chips \u2014 that are foundational to a number of emerging technologies like AI and quantum computing. The Biden administration spent much of its last two years in office <a href=\"https:\/\/www.cnn.com\/2025\/01\/13\/tech\/china-us-biden-chips-ai-curbs-hnk-intl\/index.html\">attempting to restrict<\/a> the flow of semiconductors to China.<\/p>\n<p>Previous attempts to restrict the supply of similar technologies to China have had mixed results. While <a href=\"https:\/\/www.businessinsider.com\/eric-schmidt-comments-china-behind-united-states-ai-2024-5\">conventional wisdom<\/a> over the past year held that China was behind the U.S. in the global AI race, 2025 has seen multiple Chinese companies <a href=\"https:\/\/cyberscoop.com\/deepseek-website-malicious-attack-ai-china\/\">release large language models<\/a> that are capable of performing as well as many of the top American-made models, in some cases with far more efficient computing and (allegedly) at a significantly cheaper cost.<\/p>\n<p>China has also been steadily working to build up its own domestic industry for semiconductors and other key technologies, with the goal of weaning itself off dependence from U.S. firms.<\/p>\n<p>\u201cThis is shocking to me, because I thought that the restrictions we placed on chips would keep them back,\u201d former Google CEO Eric Schmidt said <a href=\"https:\/\/www.youtube.com\/live\/xMvPuRfXOdM\">last November<\/a> when discussing Chinese AI advancements over the past year and a half.<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"3.2866666666667\">\n<div class=\"author-card\" readability=\"13\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/03\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech-1.jpg?w=640&ssl=1\" alt=\"Derek B. Johnson\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Derek B. Johnson<\/h4>\n<p> Derek B. Johnson is a reporter at CyberScoop, where his beat includes cybersecurity, elections and the federal government. Prior to that, he has provided award-winning coverage of cybersecurity news across the public and private sectors for various publications since 2017. Derek has a bachelor\u2019s degree in print journalism from Hofstra University in New York and a master\u2019s degree in public policy from George Mason University in Virginia. <\/p>\n<\/p><\/div>\n<div class=\"single-article__tags-container\">\n<h4 class=\"single-article__tags-title\">In This Story<\/h4>\n<\/p><\/div>\n<\/footer>\n<p> <\/html><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"single-article__ads js-single-article-sidebar\">\n<div class=\"ad ad--sidebar js-single-article-sidebar-5 ad--rightrail_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-4 ad--rightrail_2 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-3 ad--rightrail_3 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> 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{"id":7479,"date":"2025-03-26T14:48:01","date_gmt":"2025-03-26T19:48:01","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=83998"},"modified":"2025-03-26T14:48:01","modified_gmt":"2025-03-26T19:48:01","slug":"commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2025\/03\/26\/commerce-limits-19-chinese-taiwanese-companies-from-buying-u-s-tech\/","title":{"rendered":"Commerce limits 19 Chinese, Taiwanese companies from buying U.S. tech"},"content":{"rendered":"