The Biden administration is set to strengthen its hold on US exports to China, as it is now reported that new policies are being planned to close "trade loopholes."
Biden Administration Is Eager To Maintain AI Dominance Over China By Further Regulating AI Hardware Exports
Well, it looks like the US-China trade war is going to heat up now, given that both nations are involved in policy revisions targeted at thwarting each other's exports. With the AI hype in force, the Biden administration has imposed several restrictions over the past few quarters on exports to China, but despite such measures, Chinese organizations weren't influenced by such policies, mainly due to the presence of loopholes.
However, now, SCMP reports that US lawmakers are moving towards patching such workarounds, through a new set of policy revisions. It is stated that new measures will be aimed at controlling the flow of AI accelerators into China by restricting and regulating exports in order to ensure that the US maintains its superiority in the AI markets. The new policy involved law-making from US Secretary of Commerce Gina Raimondo and National Security Adviser Jake Sullivan, both considered arch-rivals to China's influence.
While we are not sure what sort of policy we are looking at, it would likely include a ban on exports to China from nations that the US is permitted to trade with, given that these are the primary sources of trade loopholes. Nations such as India, Malaysia, and Singapore are involved in directly exporting high-end AI equipment to China through rather "shady practices" that are technically legal, so that's an area the new US policies could target.
Interestingly, China isn't holding back on such decisions by the US, given that the nation has already started massive work on promoting in-house production, along with coming up against US-dominant business, such as NVIDIA, through antitrust measures. The trade war will undoubtedly ramp up even further, once President-elect Donald Trump takes the office, given that his "tariff policy" is likely to stir up a wave of trade regulations from both nations.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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