The US has announced a further tightening of restrictions on advanced semiconductor exports to China. “Today’s updated regulations will increase the effectiveness of our controls and block additional opportunities to circumvent our restrictions,” U.S. Commerce Secretary Gina Raimondo said Tuesday. The measures are mainly aimed at China’s ability to develop AI technology.
The US started restricting sales of microchips to China a year ago. President Joe Biden’s administration continued his predecessor Donald Trump’s policies aimed at limiting Beijing’s technological advances. Raimondo emphasized that the goal is to prevent China from developing military systems based on artificial intelligence.
“It is true that AI has the potential for enormous societal benefit,” she told US media. “But it can also cause enormous and profound damage if it ends up in the wrong hands and under the wrong forces.”
Less powerful semiconductors are also affected
The American chip manufacturer Nvidia and its powerful H100 chip have been at the center of the American measures so far. Tuesday’s update to export rules now also includes an export ban on other, less powerful semiconductors from Nvidia and other manufacturers. Chips for consumer goods such as laptops, smartphones or video game consoles are not affected, although special permits are sometimes required for export.
China said on Tuesday it “strongly” opposes the restrictions. “The United States continues to generalize the concept of national security, abuse export control measures, and engage in unilateral intimidation,” the Commerce Department said. Last year, Beijing responded with its own restrictions, including a licensing requirement for the export of key raw materials for semiconductor production.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
