The United States has placed export restrictions on a number of Chinese entities, including Inspur Group, a manufacturer of computer servers, and genetics firm BGI Research, citing activities that go against US national security or foreign policy interests. These companies have been added to the Entity List for acquiring or attempting to acquire US-origin items to support China’s military modernisation efforts. The US has also cited companies providing support to Russia’s military
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Inspur Group and Beijing-based CPU maker Loongson are regarded as crucial to the Chinese government’s effort to replace foreign-made technology and boost domestic innovation. However, US companies are now prohibited from exporting to the listed entities without prior government approval.
BGI Research has also been added to the list, reflecting the US administration’s use of the blacklist to address human rights violations. The US claims that BGI Research’s collection and analysis of genetic data pose a significant risk of contributing to monitoring and surveillance by the Chinese government, which has been used to suppress ethnic minorities in China.
The sanctions on Inspur Group are similar to those imposed on Huawei Technologies, and apply to US shipments as well as foreign-made items produced with US-origin tools or technology, which effectively covers all semiconductors worldwide. Kevin Wolf, a partner at Akin Gump Strauss Hauer & Feld, believes that this move will have significant implications.
The US Commerce Department’s Bureau of Industry and Security declined to comment beyond the federal register notice. In 2020, two BGI affiliates were added to the US commerce department’s Entity List over their alleged involvement in human rights abuses in Xinjiang, which BGI denied.