The US Intensifies the Tech Rivalry by Disconnecting China From AI Chips

The Biden administration is narrowing down the categories of semiconductors that American companies can supply to China. This decision is based on the aim to eliminate gaps in previously announced regulations from last year.

The US Intensifies the Tech Rivalry by Disconnecting China From AI Chips
The US Intensifies the Tech Rivalry by Disconnecting China From AI Chips

On Tuesday, the US Commerce Department introduced new regulations that enhance a comprehensive set of export controls initially introduced in October 2022.

US Commerce Secretary Gina Raimondo, in a statement, mentioned that the revised rules “will enhance the efficiency of our controls and close off additional avenues for bypassing our restrictions. We remain committed to safeguarding our national security by limiting access to essential technologies. And diligently enforcing our regulations, all the while minimizing any unintended effects on trade.

According to a regulatory filing from the US company, advanced artificial intelligence chips like Nvidia’s H800 and A800 products will face implications.

Additionally, the regulations broaden export restrictions from mainland China and Macao to encompass 21 other countries under the US arms embargo, including Iran and Russia.

These measures, which have impacted the stock prices of prominent American chipmakers, are scheduled to come into effect in 30 days.

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

Not all chips

Raimondo, who travelled to China in August, expressed that the administration is committed to impeding the progress of China’s military. And highlighted that they chose not to impose further restrictions on chips for other purposes.

Senior administration officials specified that chips are utilized in phones, and video games. And electric vehicles were intentionally exempted from the new regulations.

However, these reassurances are unlikely to ease Beijing’s concerns. China has vowed to excel in core technologies to strengthen its status as a tech powerhouse.

On Monday, before the official announcement of the new rules, China’s Foreign Ministry criticized the Biden administration’s actions. Spokesperson Mao Ning emphasized, “The US should cease politicizing and weaponizing trade. And tech matters and avoid disrupting global industrial and supply chains. We will closely monitor the developments and steadfastly protect our rights and interests.



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