Tech war: US adds Chinese AI unicorn Zhipu to trade blacklist before Biden’s exit

Zhipu AI is among more than two dozen China and Singapore-based companies added to the US Entity List on Wednesday

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The US Commerce Department has added a Chinese AI start-up to its export control list. Photo: AFP

Published: 3:30pm, 16 Jan 2025

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.

Zhipu is one of China’s top generative AI start-ups. Photo: Handout

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.