In the previous month, ahead of the US-Chine deputy level trade negotiations, the US widened it’s ‘Entity List’ and included top Chinese artificial intelligence startups and technologies in it. This list makes it mandatory for a company to get permission from the US government for dealing with any US-based company. The US had recently added that Chinese Megvii Technology and Sense Time Group in the entity list. These companies would now be barred from obtaining US-manufactured parts and components, without the approval of the US government.
A spokesperson for the Chinese Ministry of Industry and Information Technology (MIIT) said that China would continue working on it’s telecommunication, internet, autos technology and other high tech industries, but the US should respect trade rules and act with caution.
This hurdle in the way of Chinese tech companies has made China put the ‘Made in China 2025’, initiative on a fast track. Under the initiative, China will upgrade it’s industry on an indigenous basis in 10 strategic sectors, including robotics, aerospace, semiconductors and artificial intelligence, by 2025. The Chinese President Xi Jinping has also previously urged the Chinese tech companies to be ‘self-developed and controllable.’
According to analysts, the major reason for the US to put Chinese companies in the Entity List is that the US government believes that Chinese companies are involved in the theft of US intellectual property and trade secrets and they use those stolen technologies to advance their tech programs.