The recent decision by the US to add six subsidiaries of the Inspur Group to the export restriction list marks a significant milestone in technology control policy. Inspur Group, a leading Chinese provider of cloud computing and big data services, makes this decision particularly noteworthy in the context of global technological competition.

Reasons for Inclusion on the List

The US Department of Commerce explained that the Inspur subsidiaries were added to the list due to their contribution to developing supercomputers for Chinese military purposes. This decision underscores the US's aim to restrict China's access to advanced technologies that could be used for military applications.

Geography and Scope of Restrictions

- China and Taiwan. Five of the six Inspur subsidiaries are located in China, with one in Taiwan. This indicates a broad scope of measures aimed at curbing technological development in the region.

- Other Countries. The list also includes companies and institutions from Iran, Pakistan, South Africa, and the United Arab Emirates. In total, approximately 80 organizations have been added to the export control list.

Objectives of the Restrictions

1. Preventing the Development of Military Technologies. The restrictions are designed to curb the development of high-performance computing systems and quantum technologies that could be used for military purposes.

2. Control Over Artificial Intelligence. The US aims to limit China's capabilities in advanced artificial intelligence, potentially impacting the development of new technologies.

3. Hindering the Development of Hypersonic Weapons. The restrictions also target the prevention of hypersonic weapon development, which could alter the balance of power on the international stage.

Impact on the Global Economy

- Technological Competition: These measures may intensify technological competition between the US and China, potentially accelerating the development of indigenous technologies in China.

- Global Supply Chains: The restrictions could affect global supply chains, as companies are forced to seek new ways to circumvent the sanctions.

- Investment in Technologies: Such measures may encourage investment in the development of alternative technologies, which could have long-term implications for the global economy.

Conclusion

The US decision to impose export restrictions on Inspur Group and other Chinese companies highlights the tension in relations between the world's two largest economies. These measures aim to limit China's technological progress in strategically important areas, which could have significant implications for the global economy and international security.