The restrictions are designed to prevent U.S. chips and equipment from strengthening China's military. However, Beijing has accused the U.S. of using export controls to suppress Chinese companies. The new rules will also cover AI chips as technology evolves, requiring companies to notify the government about semiconductors whose performance is just below the guidelines before they are shipped to China. The rules may also close a loophole that allows Chinese companies to access American AI chips through overseas units.
Key takeaways:
- The U.S. is planning to introduce new rules to prevent American chipmakers from selling semiconductors to China that circumvent government restrictions, specifically targeting AI chip exports.
- The new rules will block some AI chips that fall just under current technical parameters and will require companies to report shipments of others.
- The updated rules are also designed to cover AI chips as technology evolves, requiring companies to notify the government about semiconductors whose performance is just below the guidelines before they are shipped to China.
- The Biden administration has informed Beijing of its plans to update these rules, which are part of a policy aimed at stabilizing relations between the two superpowers.