US Blacklists Chinese AI Company Zhipu AI Amid Rising Tech Tensions

Chinese start-up Zhipu AI has expressed strong opposition to the decision made by the United States to place the company on an export blacklist. This ban comes as part of a larger set of trade restrictions announced by President Joe Biden's administration.

On Wednesday, the US Department of Commerce officially added 25 companies based in China and two from Singapore to its Entity List. The US government claims these firms are involved in supporting China’s military advancements. Being on this list prohibits these companies from acquiring technology from US firms without obtaining special government permission.

Zhipu AI, which is based in Beijing and recognized as one of China’s leading generative AI start-ups, released a statement stating that it believes the US decision is unfounded. The company maintains that being included in the Entity List will not significantly disrupt its business operations.

Another notable company on the updated blacklist is Sophgo, a Chinese chip design company. Last year, Sophgo was scrutinized after a chip purchased from Taiwan Semiconductor Manufacturing Company (TSMC) was linked to a chip used in a processor manufactured by Huawei Technologies. Huawei has been on the Entity List since 2019.

The blacklist also includes a lesser-known company based in Singapore called PowerAIR. Reports indicate that TSMC terminated its relationship with PowerAIR following a client review that raised concerns about potential violations of US export controls.

As the rivalry between the US and China in technology continues to intensify, the implications of such actions could have long-standing effects on the landscape of the tech industry.

US, China, AI