US Government Plans to Tighten Export Controls on AI Chips Amid Ongoing Tech Battle with China

By: Eva Baxter

The United States is reportedly considering increasing regulations to limit China's access to American-made artificial intelligence (AI) chips. The Biden administration aims to inhibit Chinese companies from acquiring these AI chips through offshore subsidiaries. This move, which is part of the escalating tech conflict between the US and China, underlines ongoing efforts by the US to maintain control in the global AI competition.

Last year, the U.S. government severed off its chip trading and chip-making tools with China. However, the ban was focused exclusively on China, allowing Chinese companies to procure the necessary chips through overseas subsidiaries. Nonetheless, the proposed regulations may completely bar Chinese companies from accessing U.S. AI chips.

Among the major manufacturers of these AI chips are U.S. based multinational technology companies Nvidia and Intel. To control this, the US Government has passed orders for Nvidia and AMD to limit the sale of their AI chips to specific countries. Concurrently, reports indicate that China is trying to strengthen its efforts to outdo the US in the ongoing AI war, including a significant increase in its computing power.

On the other hand, China, amidst these increasing restrictions, is making a countermove. Aiming to enhance the security of its supply chain in light of the U.S's export curbs, China has embarked on initiatives to control the exports of gallium and germanium - two primary resources used in AI chip production.