U.S. Escalates Tech War with China: Trump Administration Expands Global Blacklist to Halt AI and Hypersonic Development

🌐 Published on: March 26, 2025 ✍️ Author: Global World News Desk 🔗 Source: GlobalWorldCitizen.com

In a dramatic escalation of the U.S.-China tech rivalry, the Trump administration has announced a sweeping expansion of its export control blacklist, targeting over 80 global entities—with a heavy focus on China’s artificial intelligence, quantum computing, and hypersonic weapons programs.

The U.S. Commerce Department’s Bureau of Industry and Security (BIS) stated that the move is aimed at preventing adversaries from using American technology for military modernization, including the development of exascale supercomputers and advanced weaponry.

What’s Happening?

More than 50 Chinese and Hong Kong-based companies were added to the U.S. Entity List, alongside firms from Pakistan, the UAE, Iran, South Africa, and even Taiwan. These entities, the U.S. alleges, are contributing to military programs that pose a threat to U.S. national security and global stability.

Key targets include:

Inspur Group subsidiaries, accused of supporting Chinese military supercomputing initiatives.
Beijing Academy of Artificial Intelligence and Beijing Innovation Wisdom Technology, alleged to be developing military-grade AI and chips.
Firms tied to Sugon (Dawning Information Industry), already blacklisted for supporting hypersonic simulations and advanced modeling.

U.S. Officials Speak Out

“American technology should never be used against the American people,”
– Jeffrey I. Kessler, Undersecretary for Industry and Security, U.S. Commerce Department.

The statement emphasized that the administration is sending a “clear and resounding message”—U.S. technology must not fuel rival military advancements in AI, hypersonics, UAVs, and quantum computing.

Global Implications

China’s Foreign Ministry swiftly condemned the decision, accusing Washington of “hegemonic behavior” and undermining the global supply chain.

“This severely violates international norms and harms Chinese enterprises,” said Spokesperson Guo Jiakun, calling on the U.S. to stop politicizing trade under the pretext of national security.

The move also affects:

Iran, whose drone procurement is being targeted.
Pakistan, for its alleged nuclear and ballistic missile development, partly backed by Chinese entities.
South Africa, specifically the Test Flying Academy, for reportedly training Chinese military pilots using U.S.-origin tech.

The Bigger Picture

This action follows a global pattern of intensifying tech sovereignty efforts and geopolitical decoupling. The U.S. is now aggressively reinforcing barriers to prevent its cutting-edge innovations from enabling foreign military ambitions.

Exascale computing, capable of one quintillion calculations per second, is critical to modern AI and missile simulations.
Quantum technologies may redefine global cyberpower and intelligence gathering.
Hypersonic missiles challenge traditional defense systems, traveling at 5x the speed of sound or more.

Economic Fallout

Inspur Software, listed on the Shanghai Stock Exchange, saw its shares fall after the announcement.
Dawning (Sugon) acknowledged in its annual report that U.S. sanctions are impacting its global component procurement.

Still, these companies are doubling down on local suppliers and pushing forward with government-backed R&D to maintain technological momentum.

Why It Matters for Global Citizens

This is not just a U.S.-China issue. The global tech landscape is being reshaped. As countries race for AI supremacy, defense innovation, and digital independence, export controls, supply chain decoupling, and techno-nationalism will increasingly define global trade, security, and innovation ecosystems.