In a move that underscores America’s evolving stance on Chinese technology, the Biden administration has blacklisted 14 Chinese firms—among them Sophgo and Zhipu AI—tightening the grip on exports and intensifying a trade conflict that has spanned multiple presidencies.
The decision follows a swirl of controversy involving Taiwan Semiconductor Manufacturing Co. (TSMC) chips discovered within Huawei’s Ascend 910B AI processor. By targeting not just Huawei but also its network of collaborators, the United States appears determined to restrain China’s ambitions in advanced computing. The Commerce Department’s broadened Entity List now includes companies accused of facilitating Huawei’s circumvention of American export rules.
One name drawing particular attention is Sophgo, said to be affiliated with Bitmain, which raised suspicions after apparently sourcing TSMC chips that later turned up in Huawei’s processor. Despite being flagged for months by U.S. officials, Sophgo’s official blacklisting underscores the administration’s heightened urgency. Complicating matters further, large language model creator Zhipu AI joined the restricted ranks for allegedly fueling China’s military modernization—an assertion that Zhipu AI staunchly disputes.
The timing of these actions coincides with recent American efforts to control the global flow of semiconductor technology. On Monday, the administration unveiled an “Interim Final Rule on Artificial Intelligence Diffusion,” proposing extensive checks on exports that could affect everything from integrated AI chipsets to software design tools. Industry giant Nvidia reacted sharply, characterizing the proposal as “misguided” and a threat to U.S. leadership in innovation.
These developments occur amid an already high-stakes environment. The earlier Trump administration famously placed Huawei on the restricted list in 2019, accusing the company of undermining U.S. national security and intellectual property. Biden’s team has effectively doubled down on that legacy, even as the AI race intensifies, with American businesses caught in the tug-of-war between fostering homegrown technological breakthroughs and neutralizing perceived threats from abroad.
The ripple effects of this trade policy extend far beyond any single corporation. As high-tech supply chains tighten and regulatory watchlists expand, the underlying tension between the U.S. and China grows more conspicuous. Whether the new measures genuinely curtail China’s tech ascendancy or inadvertently hinder American enterprises remains an open question—one with long-term implications for global trade and innovation.
FAQs
- Why did the US blacklist Sophgo?
Sophgo is accused of supplying TSMC-made chips that ended up in Huawei’s AI processor, violating U.S. trade regulations. - What is Zhipu AI’s significance?
Zhipu AI develops large language models and has been linked to China’s military modernization, leading to its inclusion on the restricted list. - How did Huawei first fall under US restrictions?
The Trump administration blacklisted Huawei in 2019 over national security concerns and alleged intellectual property theft. - Why is Nvidia critical of new US export rules?
Nvidia argues that stricter regulations hamper U.S. competitiveness and innovation in the burgeoning AI market. - Does the Biden administration plan to continue a hardline policy on Chinese tech?
So far, yes. Recent measures suggest that Washington aims to restrict China’s access to advanced semiconductor and AI technologies.
