U.S. delays blacklisting DeepSeek, 100 China firms

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1–2 minutes

Summary

Sources said the U.S. delayed adding DeepSeek and more than 100 Chinese firms to a trade blacklist despite prior approval.

Why this matters

The Entity List is a key U.S. export-control tool, and a prolonged pause in new listings could affect how Washington restricts technology flows to Chinese companies tied to security concerns. The delay also highlights how trade policy and national security policy can intersect in U.S.-China relations.

The United States has not added China’s DeepSeek, memory chipmaker ChangXin Memory Technologies (CXMT), and more than 100 other companies identified as national security risks to a Commerce Department trade blacklist, according to two people familiar with the matter, as the Trump administration seeks to avoid increasing tensions with Beijing.

DeepSeek, CXMT, and other companies were approved by an interagency committee last year for addition to the Entity List, according to the sources.

A senior State Department official told Reuters last year that DeepSeek had supported China’s military and intelligence operations and had tried to use Southeast Asian shell companies to illegally access advanced U.S. chips. This year, Anthropic said it found a campaign by DeepSeek and two other Chinese AI labs to extract capabilities from its Claude platform to improve their own models, and OpenAI told lawmakers that DeepSeek was also targeting its models.

U.S. companies cannot ship goods, software, or technology to listed companies without a license, which is likely to be denied.

The Commerce Department’s Bureau of Industry and Security did not directly answer questions about why no Entity List updates had been published since last year, or comment on DeepSeek and CXMT. It said it uses “many policy and enforcement tools, including the Entity List … on a daily basis to ensure we are combating bad actors.”

The United States has not posted any Entity List additions since October, the longest gap in more than a decade, said Philip Luck of the Center for Strategic and International Studies. “The Entity List is like whack-a-mole and you’ve got to keep whacking the moles,” Luck said.

One source said multiple Chinese companies were slated for listing for supplying Russian drones recovered in Poland last September. Another source said dozens of Chinese companies identified last year as risks for selling restricted Nvidia chips to Chinese universities were not added. Since late 2025, Jeffrey Kessler, under secretary of commerce for industry and security, has sought to avoid listing Chinese parties for fear of escalating tensions, according to the first source and others familiar with the matter.

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