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Tech war: US eyes more AI chip curbs on Chinese companies abroad to close loophole
- US rules restricting shipments of AI chips and chipmaking tools to China are set to be tightened in the coming days, sources say
- In the initial round of curbs, the Biden administration left overseas subsidiaries of Chinese companies with unfettered access to the AI chips
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The Biden administration is considering closing a loophole that gives Chinese companies access to American artificial intelligence (AI) chips through units located overseas, according to four people familiar with the matter.
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The United States last year shook relations with Beijing when it unveiled new restrictions on shipments of AI chips and chipmaking tools to China, seeking to thwart its military advances. Those rules are set to be tightened in the coming days. A person familiar with the situation said the measure could be included in those new restrictions.
In the initial round of curbs, the Biden administration left overseas subsidiaries of Chinese companies with unfettered access to the same semiconductors, meaning they could easily be smuggled into China or accessed remotely by China-based users.
Reuters reported in June that the very chips barred by US regulations could be purchased from vendors in the famed Huaqiangbei electronics area in the southern Chinese city of Shenzhen.
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AI chip maker ordered by US government to halt exports to China
AI chip maker ordered by US government to halt exports to China
Washington is now mulling ways to close the loophole, sources said, a move that has not been previously reported.
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The efforts to close the loophole show how the Biden administration is struggling to cut China off from top AI technology and how difficult it is to plug every gap in export controls.
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