The US Department of Commerce has added leading Chinese solution provider Sitonholy, who primarily sells processors from Intel and NVIDIA, to its Entity List. This inclusion on the Entity List undoubtedly impacts Sitonholy but also has significant implications for American companies like Intel and NVIDIA.
According to reports from the South China Morning Post and Reuters, Sitonholy sells hardware based on Intel and NVIDIA technologies and also provides cloud services. As a result, US companies engaging in business with Sitonholy require export licenses from the Department of Commerce, but these license applications are presumed to be denied during the review process.
This development is a significant blow to Sitonholy and American companies alike. Kevin Kurland, a US export enforcement official, stated during a hearing of the US Senate subcommittee that the US government has placed four Chinese companies on an export blacklist for assisting the Chinese military in obtaining AI chips. The four Chinese companies are Linkzol Technology, Xi’an Like Innovative Information Technology, Beijing Anwise Technology, and Sitonholy.
A Chinese Foreign Ministry spokesperson criticized the United States for unfairly targeting Chinese companies through export controls and demanded that the US stop politicizing trade and technology issues.
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