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US further restricts China from AI chips to hinder military development

  • The curbs aim to hamper China’s military development by closing loopholes in regulations released last October
  • The new rules, which change the parameters of affected chips, may significantly impact the US manufacturer Nvidia

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The US is further restricting the sale of chips that the Nvidia Corporation designed for the Chinese market. Photo: Reuters
Amber Wangin BeijingandIgor Patrickin Washington

The United States released new rules on Tuesday to further restrict China’s access to advanced chips and chipmaking tools, the latest in a series of measures aimed at curbing China’s technological and military advances.

The new rules will reinforce the export controls on semiconductor technology to China the administration unveiled last October.

These updates “are necessary to maintain the effectiveness of these controls, close loopholes, and ensure they remain durable”, according to a statement by the Commerce Department on Tuesday.

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“Today’s updated rules will increase effectiveness of our controls and further shut off pathways to evade our restrictions. These controls maintain our clear focus on military applications and confront the threats to our national security posed by the PRC government’s military-civil fusion strategy,” Commerce Secretary Gina Raimondo said.

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Biden’s China tech policy goal: a 10 year handicap

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The latest move comes just weeks before the Apec leaders summit in San Francisco, where officials on both sides have been trying to lay the groundwork for a meeting between US President Joe Biden and Chinese President Xi Jinping.

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The announcement also followed the opening of the third Belt and Road Forum for International Cooperation, which marks the 10-year anniversary of Xi’s flagship outbound investment plan.
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