U.S. blacklists seven Chinese supercomputing entities citing national security concerns

Chinese and U.S. flags flutter outdoors the constructing of an American firm in Beijing, China January 21, 2021.

Tingshue Wang | Reuters

WASHINGTON – The Commerce Department on Thursday added seven Chinese supercomputing entities to a U.S. financial blacklist citing national security concerns.

The division added Tianjin Phytium Information Technology, Shanghai High-Performance Integrated Circuit Design Center, Sunway Microelectronics, the National Supercomputing Center Jinan, the National Supercomputing Center Shenzhen, the National Supercomputing Center Wuxi and the National Supercomputing Center Zhengzhou to its blacklist.

The seven entities have been blacklisted for “building supercomputers used by China’s military actors, its destabilizing military modernization efforts, and/or weapons of mass destruction programs.”

U.S. officers have lengthy complained that Chinese corporations are beholden to the People’s Republic of China and gather delicate info on behalf of the People’s Liberation Army. The Chinese Communist Party has beforehand mentioned that it doesn’t interact in industrial espionage. 

“Supercomputing capabilities are vital for the development of many – perhaps almost all – modern weapons and national security systems, such as nuclear weapons and hypersonic weapons,” U.S. Secretary of Commerce Gina Raimondo wrote in an announcement.

“The Department of Commerce will use the full extent of its authorities to prevent China from leveraging U.S. technologies to support these destabilizing military modernization efforts,” she added.

The new guidelines, which limit U.S. exports to the entities in query, take impact instantly. However, they don’t apply to items from U.S. suppliers which are already en route.

The Chinese Embassy in Washington didn’t instantly reply to CNBC’s request for remark.

Under former President Donald Trump, the U.S. added a slew of Chinese corporations to its financial blacklist, together with the nation’s prime smartphone maker, Huawei, top chipmaker SMIC and the most important drone producer, SZ DJI Technology.

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