US Imposes Tech Restrictions on Chinese Companies Amid AI Concerns

The United States should not politicize technology and trade or use national security concerns to restrict normal business activities, as such measures risk undermining fair competition and international cooperation on innovation, analysts said on Wednesday. They said that the increasing use of administrative restrictions against Chinese technology companies could increase uncertainty for businesses, weaken global supply chains and impede technological progress, as artificial intelligence becomes a key driver of many countries' economic growth. Their comments came after Washington announced on Monday two measures targeting Chinese companies, including restrictions on products and services developed by DeepSeek, a Chinese AI company known for its open-source models, and sanctions against five Chinese companies over alleged trade secret theft. The US Department of Homeland Security has prohibited federal civilian executive agencies from purchasing products and services developed by DeepSeek and its affiliates, and has ordered the removal of these products from government information systems. In a separate move, the US imposed sanctions on five Chinese companies on Monday under the Protecting American Intellectual Property Act, accusing them of stealing trade secrets. On Tuesday, China's Ministry of Commerce strongly opposed both steps, urging the US to withdraw its discriminatory restrictions and stop discrediting and suppressing Chinese businesses. The ministry said that Chinese AI companies have developed their technological capabilities through sustained research, independent innovation and international cooperation, and have consistently complied with the laws of the countries they operate in. According to the ministry, China and the US agreed in late September to establish a dialogue on AI to exchange views on related risks and benefits, with the next round of talks scheduled for November. The two sides also agreed to set up a communication channel for AI-related incidents. Victor Gao, chair professor of international relations at Soochow University in Suzhou, Jiangsu province, said that the development of AI should focus on practical applications, industrial productivity and international cooperation, rather than technological confrontation. He said that greater openness and collaboration would help narrow the global AI divide, ensuring that technological advances benefit more countries and businesses. China's open-source AI models have helped lower development costs and expand access to advanced technologies, enabling businesses, research institutions and developers to build applications tailored to local market needs, according to a study published in early October by the Chinese Academy of International Trade and Economic Cooperation. The study found that China's growing open-source AI ecosystem has supported technological innovation and practical applications, allowing developers to share their research findings, improve model security and reduce computing costs through more efficient deployment. Christopher McNally, a professor of political economy at Chaminade University of Honolulu in the US state of Hawaii, said that open-source AI models are gaining traction among businesses and developers worldwide, giving companies greater flexibility to customize technologies and reduce their dependence on proprietary systems. Wang Huiyao, president of the Beijing-based think tank Center for China and Globalization, said that AI should be a priority for cooperation within the Asia-Pacific Economic Cooperation, as growing divisions in the global technology landscape underscore the need for greater dialogue and collaboration. He said that China's extensive application scenarios could encourage small and medium-sized enterprises to adopt new technologies, adding that continued dialogue between China and the US on AI governance will also help manage differences and support global technological development.