WASHINGTON, Jan 10, 2024 (BSS/AFP) - A key US lawmaker has called on
Washington to mull trade curbs on Emirati artificial intelligence firm Group
42 Holdings (G42) over its ties with China, according to a letter released
Tuesday.

Mike Gallagher, the Republican chair of the House Select Committee on the
Chinese Communist Party, raised concerns over the firm's business links with
Chinese military companies, state-owned entities and intelligence services.

"G42 maintains active relationships with blacklisted entities including
Huawei and Beijing Genomics Institute," said Gallagher in a letter to the
Department of Commerce dated last week.

He added that G42 chief executive Peng Xiao runs and is affiliated with "an
expansive network" of Emirati and China-based companies developing dual-use
technologies and which support human rights abuses.

He urged for Commerce to consider if the company, alongside 13 subsidiaries
and affiliates, should be added to a trade blacklist.

Five of the firms were said to have links with Emirati cyberintelligence firm
DarkMatter.

Companies added to the so-called Entity List are restricted from obtaining US
items and technologies without government authorization.

US companies that have commercial ties with G42 and its subsidiaries include
Microsoft, Dell and OpenAI.

"Without restrictions on G42, the hardware and software developed by these
U.S. companies are at significant risk for diversion to G42's PRC-based
affiliates," Gallagher's letter said, referring to the People's Republic of
China.

Many of these affiliates, he added, "support the CCP's surveillance state and
human rights abuses."

The letter marks the latest push by Gallagher and his Select Committee to
heighten scrutiny over trade flows involving China and take action against
companies with links to Beijing.

Last week, the committee urged for internet device firm Quectel Wireless
Solutions -- a Chinese company -- to be blacklisted as a "Chinese military
company."

In his latest letter, Gallagher asked for a "detailed explanation" by
February 2 if the Commerce Department deemed that G42 or its affiliates did
not need to be put on the trade blacklist.