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In the tech race, the US is trying its best to suppress China's progress in AI.
The Biden administration has announced additional restrictions on the sale of advanced semiconductors by U.S. companies. The decision is aimed at strengthening restrictions imposed in October 2022 and slowing down China's progress in the field of supercomputers and artificial intelligence.
The rules could lead to the termination of most shipments of advanced chips from the United States to Chinese data centers that use them to create AI models. More American companies that want to sell advanced chips or equipment for their production to China will have to notify the government of their plans or get a special license.
To prevent the risk of US chip exports to China via third countries, the US will also require chip manufacturers to obtain licenses to supply to dozens of other countries that are subject to the US arms embargo.
The Biden administration has argued that China's access to such advanced technology is dangerous because it can help carry out military tasks such as controlling hypersonic missiles, building advanced surveillance systems, or hacking into U.S. systems with sensitive information.
However, artificial intelligence also has valuable commercial applications, and stricter restrictions could affect Chinese companies, particularly ByteDance (TikTok's parent company) and Internet giant Baidu.
In the long run, the restrictions could also weaken China's economy as AI transforms the retail and healthcare industries. In addition, the law may weaken sales to China of chips from Nvidia, AMD and Intel. Some chip manufacturers get up to 30% of their revenue from Chinese buyers.
U.S. officials said the rules will exclude chips designed exclusively for commercial applications, such as smartphones, laptops, electric vehicles and gaming systems.
The new restrictions may irritate Chinese policymakers, but on the other hand, they may also increase China's efforts to develop alternative technologies, ultimately weakening US global influence.
The Biden administration has announced additional restrictions on the sale of advanced semiconductors by U.S. companies. The decision is aimed at strengthening restrictions imposed in October 2022 and slowing down China's progress in the field of supercomputers and artificial intelligence.
The rules could lead to the termination of most shipments of advanced chips from the United States to Chinese data centers that use them to create AI models. More American companies that want to sell advanced chips or equipment for their production to China will have to notify the government of their plans or get a special license.
To prevent the risk of US chip exports to China via third countries, the US will also require chip manufacturers to obtain licenses to supply to dozens of other countries that are subject to the US arms embargo.
The Biden administration has argued that China's access to such advanced technology is dangerous because it can help carry out military tasks such as controlling hypersonic missiles, building advanced surveillance systems, or hacking into U.S. systems with sensitive information.
However, artificial intelligence also has valuable commercial applications, and stricter restrictions could affect Chinese companies, particularly ByteDance (TikTok's parent company) and Internet giant Baidu.
In the long run, the restrictions could also weaken China's economy as AI transforms the retail and healthcare industries. In addition, the law may weaken sales to China of chips from Nvidia, AMD and Intel. Some chip manufacturers get up to 30% of their revenue from Chinese buyers.
U.S. officials said the rules will exclude chips designed exclusively for commercial applications, such as smartphones, laptops, electric vehicles and gaming systems.
The new restrictions may irritate Chinese policymakers, but on the other hand, they may also increase China's efforts to develop alternative technologies, ultimately weakening US global influence.
