{
    "success": true,
    "data": {
        "id": 1808555,
        "msgid": "trump-administration-backs-down-after-china-threatens-harsher-retaliation-1781707886",
        "date": "2026-06-17 21:00:00",
        "title": "Trump Administration Backs Down After China Threatens Harsher Retaliation",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Trade",
        "summary": "The Trump administration has suspended plans to add over 100 Chinese firms, including AI startup DeepSeek and chipmaker CXMT, to a US trade blacklist following stern warnings of retaliation from Beijing. The move marks a sudden softening of Washington's stance, aimed at avoiding escalating tensions, despite earlier Pentagon actions against Chinese tech giants. The suspended 'Entity List' designations would have severely restricted American companies from supplying goods and technology to the listed firms.",
        "content": "<p>In early June 2026, the United States added a string of Chinese\ntechnology giants to the Department of Defence\u2019s (DoD\/Pentagon)\nblacklist known as \u20181260H\u2019 or \u2018CMC\u2019. This immediately drew a fierce\nreaction from Xi Jinping\u2019s administration. The 1260H list comprises\nentities deemed to be assisting or involved with the Chinese military.\nAlthough the list does not officially impose sanctions on the Chinese\ncompanies, it carries significant repercussions. Under US law, the\nPentagon is barred from entering into direct contracts with companies on\nthe list, and from purchasing their products or services through third\nparties starting in 2027. These measures can impose material costs on\nChinese firms and their partners. Being placed on the list also sends a\npotentially damaging message to Pentagon suppliers and other US\ngovernment agencies. \u201cWe will certainly retaliate firmly and harshly,\u201d\nChina\u2019s Ministry of Commerce said in a statement responding to the US\ndecision. Beijing urged the Donald Trump administration to cease its\nerroneous practices and return to the correct path of building a\nstrategic and stable relationship between the two nations. Other Chinese\ncompanies added to the list included veteran chipmakers CXMT and YMTC,\nbiotechnology firm WuXi AppTec, AI-based robot manufacturer RoboSense\nTechnology, and Unitree, a leading Chinese robotics and humanoid\ncompany. Shortly after the threat from China\u2019s Ministry of Commerce, the\nTrump administration abruptly softened its stance. This did not concern\nthe Pentagon list, but another blacklist maintained by the US Department\nof Commerce. The US suspended the addition of more than 100 Chinese\ncompanies to the so-called \u2018Entity List\u2019, including AI startup DeepSeek\nand chipmaker CXMT, according to two sources familiar with the matter.\nThe Trump administration reportedly sought to avoid escalating tensions\nwith Beijing, thus suspending the blacklist additions. DeepSeek, whose\nlow-cost AI model shook the tech world in January 2025, has supported\nChinese military and intelligence operations, a senior US State\nDepartment official said last year. The official added that the startup\nattempted to use shell companies in Southeast Asia to illegally access\nadvanced US chips. This year, Anthropic stated it had identified a\ncampaign by DeepSeek and two other Chinese AI labs to illegally extract\ncapabilities from its Claude AI platform to enhance their own models.\nOpenAI warned lawmakers that DeepSeek was also targeting its models.\nCXMT, China\u2019s leading memory chip maker, was designated a Chinese\nmilitary company by the Pentagon under the Biden administration. The\nCommerce Department considered adding it to the Entity List over a year\nago. US companies cannot ship goods, software, or technology to firms on\nthe list without a licence, which would likely be denied. DeepSeek and\nCXMT could not be reached for comment outside normal working hours. The\nCommerce Department\u2019s Bureau of Industry and Security, which oversees\nthe list, did not directly respond to questions about why the Entity\nList update has not been published since last year, nor did it comment\non DeepSeek and CXMT. The bureau uses \u201cmany policy and enforcement\ntools, including the Entity List, to ensure we combat bad actors,\u201d BIS\nsaid in a statement.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/trump-administration-backs-down-after-china-threatens-harsher-retaliation-1781707886",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}