China Retaliates Against US Over AI Chip Export Curbs Concerning National Security

In what comes as a headline-making consequence of the Biden Administration’s modified AI Chip export curbs, China recently condemned the U.S. regulators’ reinforcement of regulations orbiting semiconductor exports, claiming it poses an obstacle to the nation’s trading sector and exposes more uncertainty in the chip industry. This comes soon after the Biden Administration announced revamped rules orbiting AI chip exports nationwide that now engulfed laptops under its umbrella.

Coming as an effort to hamper Chinese chip-making markets, this scrutinized approach by the Biden Administration stems from nationwide security concerns in the U.S. Following an initial ban on AI chip exports to China in October last year, the U.S. regulators appear to have embarked upon a venture to hamper Beijing’s AI sector amidst rising concerns of China bolstering its military capabilities, which stages as a threat to the U.S.

China Unhappy With The U.S.’s Scrutinized Stance

According to a recent report, a spokesperson from the Chinese Commerce Ministry stated, “The U.S. has broadened the concept of national security, arbitrarily revised the rules, and tightened control measures. This has not only set up more obstacles and imposed a heavier compliance burden on Chinese and American companies who want to work together economically and in trade normally, but has also created huge uncertainty for the global semiconductor industry.”

Underscoring the necessity of a less scrutinized approach that aids both nations, the spokesperson responded in an interview, stating that this decision by the U.S. “seriously affects mutually beneficial cooperation between Chinese and foreign enterprises, while it also harms the legitimate rights and interests of both entities.” To this, he added, “China firmly opposes this.”

Simultaneously, in another statement, the spokesperson proclaimed that China remains prepared to engage in activities alongside all parties, eyeing mutual benefits in cooperation. It also advocates for security and stability across the global semiconductor industry and supply chain.

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Modified Export Curbs: A Closer Look

Following the Biden Administration’s initial ban on AI chips, which engulfed giants such as Nvidia and AMD, the regulators issued a new blueprint last week. The new rules showcased that starting Thursday, laptops containing high-end AI chips will face an export ban in China.

Meanwhile, the nation’s Commerce Department added that it plans to continuously revise guidelines and restrictions on AI chip exports to China, as this newly emerging tech exposes the country to dynamic challenges.

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