The Biden administration in the US is set to implement new rules to prevent American chipmakers from selling semiconductors to China that circumvent government restrictions on AI chip exports. The new rules will be added to existing restrictions on shipments of advanced chips and chipmaking equipment to China. The updates are expected to be announced this week. The rules will block some AI chips that fall just under current technical parameters, while companies will be required to report shipments of others. The aim of the export curbs is to prevent US chips and equipment from strengthening China’s military.
The latest crackdown on tech exports to China comes at a time when the US is also seeking to improve relations with the country. However, the new round of rules risks complicating diplomatic efforts. The Chinese embassy in Washington has not yet responded to the news. Last year, Nvidia was prevented from shipping its most advanced AI chips to Chinese customers due to government restrictions. However, the company released new variants for the Chinese market that were less sophisticated and circumvented the export controls. The US plans to introduce new guidelines for AI chips that will restrict certain advanced datacenter AI chips that are not currently captured.
The implementation of the new rules will also require companies to notify the US government about semiconductors that slightly fall below the guidelines before they are shipped to China. The government will then assess on a case-by-case basis whether they pose a national security risk. The updates to the rules may also close a loophole that allows Chinese companies to access American AI chips through Chinese units located overseas. The rules are not expected to include restrictions on access to US cloud computing services, but the US will seek comments on the risks of such access. The Biden administration has informed Beijing of its plans to update the rules as part of its efforts to stabilize relations between the two countries.
