AsianFin -- The Biden administration on Wednesday added over two dozen Chinese companies to the U.S. restricted trade list, citing national security concerns. Among them were Zhipu AI, a prominent developer of large language models, and Sophgo, whose Taiwan Semiconductor Manufacturing Co. (TSMC)-produced chip was reportedly used unlawfully in Huawei's artificial intelligence processor.
The U.S. Commerce Department simultaneously tightened chip export controls to China, aiming to curb technology diversion to Huawei, a key player in China's AI chip strategy.
The new additions include 25 Chinese companies and two based in Singapore, according to official postings. Firms on the Entity List face stringent restrictions, requiring licenses for technology exports, which are typically denied.
Zhipu AI, backed by major investors such as Alibaba and Tencent, was blacklisted for its role in advancing China's military modernization through cutting-edge AI research.
Sophgo came under scrutiny after its chip was found in Huawei's Ascend 910B multi-chip AI system, with evidence linking it to orders placed with TSMC. Huawei, which has been on the Entity List since 2019, remains a focal point in China's pursuit of AI chip advancements.
Sophgo joins a growing list of companies penalized for their association with Huawei. Late last year, the Commerce Department sanctioned additional firms allegedly part of Huawei's "shadow network."
In response, Zhipu AI issued a statement on its WeChat account late Wednesday, asserting the U.S. decision lacked "factual basis" and downplaying the impact on its business, claiming it had achieved independent mastery of large language model technologies.
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