May 28, 2024

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US imposes tougher rules on chip exports to China

US imposes tougher rules on chip exports to China

The US wants to make it more difficult for China to obtain advanced computer chips for military applications. Sources say Financial Times. The new rules affect the business of US chip giants Nvidia and AMD.

This is not the first time US chipmakers have faced restrictions on trade with China. In October, Nvidia introduced two chips, the A800 and H800, designed specifically for the Chinese market. They also had to replace two more advanced chips, which are used for applications that work with artificial intelligence (AI).

Nvidia CEO Jensen Huang said recently Financial Times The restrictions are “doing massive damage” to the US tech industry. There is a huge demand for chips in China, and this has only increased with recent advances in AI. Nvidia’s A800 and H800 chips are currently used extensively for AI research in China. Orders are coming from Chinese companies such as Tencent, Alibaba, Baidu and ByteDance.

High fence

The new restrictions will make it more difficult for China to access AI chips used to develop hypersonic and nuclear weapons. US security adviser Jack Sullivan has previously compared the restrictions to “a tall fence around a small garden” of critical technologies such as artificial intelligence. The US is also working on a mechanism to restrict US investment in China. The Biden administration wants to reduce the likelihood that Americans will support the Chinese military.

China believes that the US consciously wants to control their country. Beijing took action against US firm Micron last month. His memory chips can no longer be used in China’s critical infrastructure because the country says they pose a security risk. Experts saw this as a response to chip restrictions imposed by the US.

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Last week, the European Commission outlined its strategy to respond more strongly to risks to its economic security. He has specifically targeted China. In a speech on Tuesday, Chinese Premier Li Keqiang slammed several Western countries calling for less dependence on China.

“Some people in the West are making a lot of fuss about the policy of reducing dependency and de-risking,” he said at the opening of the World Economic Forum in Tianjin, northern China. It was about “a misrepresentation,” he insisted. “With the development of economic globalization, the global economy has become an interconnected society,” he asserted. He used the word cooperation countless times. ‚ÄúCountries’ economies are intertwined, interdependent, mutually enriching and growing together. This is basically a good thing, not a bad thing.

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