US to tighten AI chip controls amid China pushback

The US is increasing export controls on advanced AI chips to limit China’s technological and military progress. In response, China has strongly condemned these actions as “bullying” and protectionism.

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The United States continues to tighten its control over the export of advanced AI chips to China. Recent guidelines warn that using Chinese-made semiconductors, especially Huawei’s Ascend chips, could violate US export laws, with penalties ranging from fines to imprisonment.

The intent is to block China from accessing technology that could strengthen its military or help it surpass US leadership in AI. At the same time, the US has slightly relaxed earlier restrictions after some allied nations voiced concerns about being denied access to crucial technology, suggesting a more nuanced approach that still aims to keep AI capabilities within a circle of trusted partners.

China condemned the new US measures as ‘bullying’ and warned of countermeasures, including legal action against entities that help enforce them. At the same time, US chipmakers like Nvidia and AMD criticised the restrictions, arguing that they were pushing China to accelerate domestic innovation.

Nvidia’s CEO called the controls a ‘failure,’ noting they have only strengthened China’s resolve and support for its chip sector. The ongoing tech dispute underscores the strategic rivalry between the US and China, especially in AI and semiconductors.

While the US aims to share AI advancements only with allied nations, overly strict measures could drive neutral countries to source technology from China instead. Some US lawmakers have warned that such an outcome might unintentionally aid China’s rise in AI, counteracting the original intent of the export restrictions.

Ultimately, the situation highlights the tension between securing national interests and supporting a globally connected innovation ecosystem.

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