Biden Administration Expands AI Chip Export Curbs to China

Biden Administration Expands AI Chip Export Curbs to China

The United States has updated its export control regulations to further restrict China's access to sophisticated artificial intelligence (AI) chips and chipmaking tools. This move, which will be effective from April 4, is a response to growing national security concerns and aims to impede the progress of Beijing's semiconductor industry. The rules are designed to stop the shipment of advanced AI chips, including those developed by Nvidia, to China. The decision is part of a broader strategy to curtail the technological capabilities that could potentially enhance China's military strength.

The Commerce Department, which manages export controls, has indicated that it will persist in refining and reinforcing technology export restrictions to address the changing geopolitical landscape. These updated guidelines follow an initial release in October and are part of a continuous effort to adjust U.S. policy to the evolving technological and security context.

China has criticized the U.S. government's policy, asserting that it harms the legitimate interests of Chinese companies and contravenes global trade regulations. Despite the new U.S. restrictions, Shanghai has recently announced plans to create a 100 billion yuan (approximately $13.8 billion) fund to develop critical technologies to bolster the national economy. Meanwhile, U.S. officials are reportedly working on identifying advanced Chinese chip factories that will be barred from receiving American technology to simplify compliance with the sanctions for companies.

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