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U.S. Tightens Chip Export Controls to China

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Washington, March 31 (TASR) – The Biden administration on Friday (March 29) revised rules restricting the export of American artificial intelligence (AI) chips and chipmaking tools to China. The aim is to make it harder for China to access this key technological know-how and slow its technological development.

New rules take effect April 4.

Extensive expansion of restrictions:

The new 166-page rules expand existing export restrictions and clarify that they also apply to laptops containing AI chips. The U.S. Commerce Department, which is responsible for export control, said it will continue to update and refine restrictions on technology shipments to China.

Reasons for the revised rules:

  • National security concerns: The U.S. is concerned that China could use technological advances in AI to strengthen its military and threaten U.S. interests.
  • Slowing China’s technological development: The U.S. is trying to maintain its technological lead over China and prevent it from becoming a dominant force in AI.

Criticism from China:

The Chinese government criticized the revised rules as “unreasonable and discriminatory.” It argues that these rules will damage the global supply chain and disrupt international technology cooperation.

Impact on the technology sector:

The revised rules are likely to impact American technology companies that export chips and chipmaking tools to China. These companies will need to apply for a license to export these products to China, which could delay the process and increase costs.

Future of US-China technology relations:

The revised rules are another sign of the deteriorating technological relationship between the US and China. It is difficult to predict how these relations will develop further, but tensions are likely to persist.


Source: TASR, Reuters

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