In a move that underscores the escalating technological rivalry between the U.S. and China, the U.S. government is poised to roll out new regulations aimed at curbing American chipmakers from selling certain artificial intelligence (AI) chips to China. This initiative is designed to bolster export controls and safeguard national security.
The forthcoming rules will augment existing restrictions on the export of advanced chips and chip-making equipment to China, which were announced last October. Notably, the new stipulations will prohibit the sale of specific AI chips that marginally fall below the current technical benchmarks. Moreover, companies will be mandated to report shipments of other chips.
This tightening of restrictions is part of the Biden administration's broader strategy to prevent U.S. chips and equipment from enhancing China's military prowess. However, these measures could potentially strain the already tenuous diplomatic ties between the U.S. and China. Over recent months, efforts have been underway to mend the strained relations, but Beijing has consistently accused the U.S. of leveraging export controls to stifle Chinese enterprises. This represents a marked transformation in the tech policy dynamics between the two superpowers.
In a notable instance from the previous year, governmental constraints barred Nvidia, the globe's premier chipmaker in terms of valuation, from dispatching advanced AI chips to its clientele in China. In response, Nvidia introduced less advanced versions tailored for the Chinese market, effectively circumventing the export controls. In light of this, the U.S. is gearing up to launch fresh guidelines for AI chips. These will specifically target certain avant-garde datacenter AI chips that remain outside the purview of the current regulations.
While consumer products such as laptops will be spared from the impending restrictions, companies will be obligated to notify the U.S. Commerce Department when processing orders for the most potent consumer chips. This is to ascertain that their deployment does not jeopardize national security. Additionally, in a bid to curtail the efficacy of AI chips exported to China, the U.S. is contemplating the removal of the "bandwidth parameter" that currently restricts exports. This could potentially diminish the rate at which AI chips interact.
The revamped rules will also cater to the rapidly evolving technological landscape. Companies will be required to alert the U.S. government about AI chips that slightly deviate from the established guidelines prior to their shipment to China. Subsequently, the government will assess whether these chips constitute a national security threat, determining this on an individual basis. Moreover, the regulations might seal a loophole that currently enables Chinese firms to procure American AI chips via their overseas Chinese divisions.
It's crucial to highlight that the upcoming rules are not anticipated to impose constraints on access to U.S. cloud computing services. However, the U.S. will actively solicit feedback on potential risks and strategies to mitigate them. This initiative by the Biden administration is emblematic of a more comprehensive policy aimed at fostering stability in U.S.-China relations.
