US Imposes Sanctions to Curb China's AI Advancements

The United States has introduced new export restrictions targeting China's semiconductor industry, blocking US shipments to 140 companies, including key chip equipment maker Naura Technology Group.

This marks the third major sweep on Chinese chipmaking since 2018, extending restrictions to companies like Piotech, ACM Research, and SiCarrier Technology.

The latest move aims to hinder China's development of AI technologies by limiting access to advanced memory chips and critical chipmaking tools, which could bolster China’s military capabilities and threaten US security.

Commerce Secretary Gina Raimondo described the action as "groundbreaking and sweeping," highlighting its potential to slow China's semiconductor advancements and military modernisation.

US' Restrictions Targets Over a Hundred Organisations

US companies such as Lam Research, KLA, Applied Materials, and ASM International, along with over 20 semiconductor firms, two investment companies, and more than 100 chipmaking toolmakers, are set to be impacted by the new export restrictions.

Among those affected are Swaysure Technology, linked to Huawei and already under heavy US sanctions, and Shenzhen Pensun Technology.

US suppliers will now require special licenses to conduct business with firms added to the Entity List.

In response, Chinese foreign ministry spokesperson Lin Jian criticised the restrictions, calling them a violation of global trade norms and disruptive to supply chains, while asserting China's commitment to protecting its companies.

Do these actions represent a necessary move to limit China's AI progress, or are they ultimately futile?