The Trump administration has decided to postpone, at least for now, the inclusion of Chinese AI startup DeepSeek, chipmaker ChangXin Memory Technologies (CXMT), and over a hundred other companies considered national security risks on its trade blacklist. The news, reported by Reuters, reveals a complex balancing act between trade policy and national security.

Reasons Behind the Delay

According to sources close to the agency, the decision stems from the White House's desire to avoid escalating tensions with Beijing at a particularly delicate time. An interagency committee had already decided last year to add DeepSeek, CXMT, and other companies to the Commerce Department's entity list, but implementation has been halted.

This postponement is not an isolated event. In fact, according to industry analysts, the absence of new additions since October 2025 marks the longest period without updates in a decade. Philip Luck, a researcher at the Center for Strategic and International Studies and an expert on global supply chains, notes that this pause reflects how trade policy is overshadowing a key national security tool.

DeepSeek and the AI War

DeepSeek is no ordinary company. The Chinese AI startup has been accused by US rivals of aggressive practices. For instance, Anthropic claimed to have detected a campaign by DeepSeek and two other Chinese labs to illicitly extract capabilities from its Claude platform to improve their own models. OpenAI also warned US lawmakers that DeepSeek was attempting to access its systems.

These allegations highlight the growing rivalry in the AI field, where data and models have become strategic assets. The decision not to include DeepSeek on the blacklist could be interpreted as an attempt to keep the door open for cooperation, though tensions remain high.

The Case of CXMT and Memory Chips

ChangXin Memory Technologies (CXMT) is also no minor player. This memory chip manufacturer was designated as a Chinese military company by the Department of Defense during the Biden administration. A year ago, the Commerce Department considered adding it to its entity list, but the measure did not materialize.

CXMT's importance lies in its role in the semiconductor supply chain. As Kevin Kurland, a former Commerce Department official, recalled, “the fact that the US has not added new companies since October shows that trade policy is overshadowing a key national security tool.”

Moreover, the absence of new additions contrasts with the Trump administration's tough rhetoric. In early 2025, it announced the replacement of a regulation promoted by Joe Biden to regulate global access to US-origin AI chips. However, the new regulation has yet to be published, and the previous one is not being enforced either, which could have opened a pathway to export these chips to Chinese companies outside China.

Stance of the Companies Involved

Both DeepSeek and CXMT have declined to comment. The Commerce Department's Bureau of Industry and Security (BIS), which oversees the list, has also not offered detailed explanations. In a statement, the BIS merely noted that it uses “many policy and enforcement tools, including the entity list, daily to combat malicious actors.”

A Complex Geopolitical Chessboard

This episode is just another chapter in the technological rivalry between the United States and China. While Washington resorts to tariffs and export controls to contain Beijing's advance, China maintains a dominant position in rare earths, essential for the defense industry, automotive sector, and chip manufacturing.

Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, has since late 2025 tried to avoid adding Chinese entities to prevent aggravating tensions, according to sources consulted by Reuters. However, various analysts believe that this absence of new additions shows the Trump administration's inability to act or establish new rules to curb threats that could be mitigated through export restrictions.

In this context, cybersecurity and intellectual property protection become central issues. The decision to postpone the inclusion of DeepSeek and CXMT on the blacklist not only affects these companies but also has implications for the entire global tech ecosystem.

For European companies, especially SMEs looking to adopt AI solutions, this situation creates uncertainty. Sustainability and security must go hand in hand, and the lack of regulatory clarity can hinder innovation.

Original source: ComputerWorld. Analysis and adaptation by ForgeNEX.