Chinese start-up Zhipu AI said it “strongly disagrees” with a US decision to add the company and its subsidiaries to an export blacklist, as the administration of President Joe Biden released a flurry of trade restrictions just days before he leaves office.
The US Department of Commerce on Wednesday added 25 China-based companies and two Singapore-based firms to its Entity List, accusing them of supporting Beijing’s military advance. Blacklisted companies are barred from buying technology from US businesses without special government approval.
Beijing-based Zhipu said late on Wednesday that the US move “lacks a factual basis”. It added that the firm’s inclusion on the Entity List “will not have a substantial impact” on its operations.
Also included in the updated list is Sophgo, a Chinese chip designer that attracted scrutiny last year after a chip it ordered from Taiwan Semiconductor Manufacturing Company (TSMC) was found to match one used in a Huawei Technologies processor. Huawei has been on the Entity List since 2019.
Another newly added entity is the little-known Singapore-based company PowerAIR. TSMC ended its business relationship with the secretive firm after a client review exposed a potential breach of US export controls, according to an exclusive report by the South China Morning Post last week.
Sophgo did not immediately respond to a request for comment on Thursday. The Post was unable to contact PowerAIR, which does not have any official website, publicly listed phone number or email address.