The United States has sanctioned dozens of Chinese technology companies this week, aiming to curtail Beijing's capabilities in artificial intelligence and advanced computing.

The Bureau of Industry and Security, part of the US Department of Commerce, added 80 organizations to its 'entity list,' with more than 50 stemming from China, thereby prohibiting American companies from supplying goods to these entities without government approval.

According to the agency's announcement, the companies were blacklisted due to alleged activities that contradict US national security and foreign policy interests.

This move is part of ongoing efforts to further limit China's access to cutting-edge technology, particularly exascale computing, which enables the processing of vast amounts of data at high speeds, as well as quantum technologies.

Among the sanctioned entities, many are accused of involvement in the development of advanced artificial intelligence, supercomputers, and high-performance AI chips for military purposes, as stated by the Department of Commerce.

Additionally, two companies have been implicated in supplying the sanctioned entities, including Huawei and its chip-manufacturing affiliate HiSilicon.

The list includes 27 Chinese entities for procuring US-origin products to support the modernization of the Chinese military, as well as seven firms that assisted in enhancing China’s capabilities in quantum technology.

Six subsidiaries of the Chinese cloud computing company Inspur Group, which had previously been sanctioned by the Biden administration in 2023, were also added to the entity list.

The Chinese Ministry of Foreign Affairs condemned these export restrictions, emphasizing that the United States should cease the abuse of the concept of national security.

Academics have noted that the latest expansions of the entity list extend a wider net aimed at third countries, transit points, and intermediaries.

Reports indicate that Chinese companies have managed to access US strategic dual-use technologies through certain third parties, highlighting loopholes in the system that allow Chinese firms to obtain US technology despite existing restrictions.

Experts have predicted that US officials will intensify operations to monitor and identify illicit smuggling of advanced semiconductors produced by companies like Nvidia and Advanced Micro Devices.

This expansion of export restrictions occurs at a time of rising tensions between Washington and Beijing, particularly as the Trump administration increased tariffs on Chinese goods.

The rapid ascent of Chinese AI startup DeepSeek has further stimulated the broader adoption of cheaper, open AI models in China, pressuring leading American competitors that rely on more expensive, proprietary models.