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US Lawmaker Sparks Showdown: Calls for Trade Restrictions on Abu Dhabi AI Giant G42 Over Alleged China Ties

Abu Dhabi AI Firm G42 Over China Ties

US Lawmaker Urges Action Against Abu Dhabi AI Firm G42 Over China Ties

G42 set to showcase the exponential possibilities of AI at 42nd GITEX Global

Artificial intelligence firm Group 42 Holdings


Recent events have resulted in the Chairman of the House China Select Committee, Mike Gallagher, requesting that the Commerce Department take into consideration the possibility of imposing trade restrictions on the artificial intelligence company Group 42 Holdings, which is based in Abu Dhabi. This is because the company has connections with blacklisted Chinese companies such as Huawei Technologies Co. and Beijing Genomics Laboratory.

Concerns have been raised over potential threats to research conducted at colleges in the United States, as well as probable connections to the cybersecurity company DarkMatter, which is based in Iran. The Commerce Department urgently needs to take action, according to the letter that Gallagher wrote and dated January 3.

In his letter, Chairman Gallagher stressed the need to impose sanctions on G42 and thirteen of its subsidiaries and affiliates, including those affiliated with DarkMatter. These penalties would require businesses in the United States to get a license from the government before engaging in any transactions with these corporations.

READ ALSO: Tensions Escalate As China Sanctions US Arms Manufacturers Ahead Of Taiwan Elections

Even though the letter referred to papers that indicated G42’s connections to a network of Emirati and Chinese companies that promote human rights abuses and Beijing’s military advancements, the letter did not stipulate the origin of these materials or the substance of the documents themselves. The deadline that Gallagher has established for the Commerce Department to either take action or provide a clear explanation for its lack of action is tomorrow, February 2nd.

This push for trade restrictions follows Gallagher’s ongoing efforts to prompt the Biden administration to tighten regulations on Chinese companies and entities with links to the US’s top geopolitical rival. The lawmaker recently reiterated a call to restrict access to capital for the Chinese internet device firm Quectel Wireless Solutions Co. The increasing concern regarding financial flows from the United Arab Emirates to Beijing adds to the urgency and complexity of the situation, with officials viewing this as a potential national security risk in critical technology sectors.

In response, a Commerce Department spokeswoman verified receipt of the letter and promised a proper response. G42 has not made any public statements. The letter and the potential effects of trade restrictions or penalties on G42 and its affiliates may elicit talks and replies from the concerned parties.

READ ALSO: Tensions Rise In South China Sea As U.S. And China Conduct Competing Naval Exercises

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