The United States Disconnects China from AI chips

The Biden administration is limiting the categories of semiconductors that American companies can sell to China. This is in response to the need to close gaps in the regulations that were introduced last year.

The United States Disconnects China from AI chips
The United States Disconnects China from AI chips

The United States Intensifies the Technology Rivalry by Disconnecting China from AI chips

On Tuesday, the US Commerce Department introduced new regulations that strengthen an extensive set of export controls initially introduced in October 2022.

US Commerce Secretary Gina Raimondo stated that the updated rules “will enhance the effectiveness of our controls and further block routes to circumvent our restrictions. We will continue our efforts to safeguard national security by limiting access to vital technologies, enforcing our rules rigorously, and minimizing any unintended trade disruptions.

These regulations will have an impact on advanced artificial intelligence chips, including Nvidia’s H800 and A800 products, as stated in a regulatory filing by the US company.

These regulations also extend export restrictions to 21 other nations, including Iran and Russia, in addition to mainland China and Macao. These countries are subject to arms embargoes maintained by the United States.

The measures, which have impacted the stock prices of prominent American chip manufacturers, will become effective in 30 days.

The initial regulations aimed to impede China’s access to advanced computing chips and its ability to produce advanced weaponry. Subsequently, senior administration officials have indicated the need for adjustments in response to technological advancements.

Not Every Chip

Raimondo, who traveled to China in August, stressed that the administration’s primary objective is to hinder China’s military progress, and they haven’t extended chip restrictions to other applications.

Senior administration officials intentionally excluded chips used in phones, video games, and electric vehicles from the new rules.

However, these assurances are unlikely to ease Beijing’s concerns. China remains determined to excel in core technologies to enhance its status as a technological superpower.

The Chinese Foreign Ministry criticized the new rules from the Biden administration on Monday, even before their official release.

Mao Ning, a spokesperson, stated during a press briefing, “The United States should refrain from politicizing and weaponizing trade and technology matters and cease disrupting global industrial and supply chains. We will closely monitor these developments and vigorously protect our rights and interests.

As part of the continuous conversation initiated by Raimondo and other US officials with their Chinese counterparts, a senior administration official stated that Beijing was notified of the forthcoming updates.

We informed the Chinese to provide clarity on the forthcoming rules, but there were no negotiations with them,” the official stated to reporters.

The technological competition between the world’s top two economies has been intensifying. In recent months, the United States has garnered support from its European and Asian allies to limit the sale of advanced chip manufacturing equipment to China.

In July, Beijing responded by imposing restrictions on its own, affecting the exports of germanium and gallium, two essential elements for semiconductor production.

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