U.S. delays blacklist for DeepSeek, CXMT to avoid China tensions

The Trump administration has delayed plans to add Chinese AI startup DeepSeek, memory chipmaker CXMT, and more than 100 other companies to a trade blacklist, according to people familiar with the matter. The move aims to de-escalate tensions with Beijing after weeks of escalating rhetoric over technology export controls.

The companies had been identified as national security risks, making them candidates for the Entity List – a U.S. Commerce Department restriction that requires a license for American technology sales. A formal blacklisting would have cut off access to U.S.-made semiconductors, software, and manufacturing equipment for DeepSeek, CXMT, and the broader group of firms.

The delay removes a near-term overhang for the semiconductor supply chain. NVIDIA, the dominant supplier of AI training chips, saw its shares rise in after-hours trading as traders bet the administration would avoid a direct supply disruption for Chinese AI firms. Memory makers that sell into CXMT’s DRAM production lines also gained.

DeepSeek had drawn attention for building large language models that rivaled U.S.-built systems while using fewer high-end chips. A blacklist would have forced the company to rely entirely on Chinese-made processors, potentially slowing its development cycle. CXMT is one of China’s few producers of dynamic random-access memory, a component used in everything from data center servers to smartphones. Losing U.S. fabrication tools would have made it harder for CXMT to scale production.

The list of more than 100 entities includes other semiconductor design houses, AI labs, and research institutes, people familiar said. Some of those names were already under preliminary review. The administration has not withdrawn the proposals. It simply paused the final approval steps.

Beijing has warned that further export controls could prompt retaliation against U.S. companies operating in China, including Apple and Tesla. The delay suggests Washington wants to avoid that outcome while keeping the threat of future blacklisting on the table.

Shares of the iShares China Large-Cap ETF and the Invesco China Technology ETF both closed higher on Friday. U.S.-listed Chinese stocks such as Alibaba and Baidu also rose, though the broader market was mixed.

The Commerce Department declined to comment. DeepSeek and CXMT did not respond to requests for comment.

The delay is temporary. Officials said the administration could revisit the blacklist if tensions escalate again, particularly if Beijing moves to restrict rare earth exports or imposes new tariffs on U.S. goods. For now, the companies have more time to adjust supply chains and seek alternative sources of critical components.