With the start of 2025, new US measures have intensified pressure on China's tech sector, including increased tariffs on Chinese solar products, polysilicon, and tungsten implemented on January 1.
The United States strengthened restrictions on advanced computing semiconductors on Wednesday to prevent the diversion to China of high-end chips, the Commerce Department said.
UVEUs have no restrictions on the number of controlled AI chips they can export. U.S. headquartered UVEUs have to keep at least 50 percent of their AI compute base in the U.S., at least 75 percent in U.S. and close allies and partners, and have no more than 7 percent in any other individual country.
The goal of the new controls, US Commerce Department officials said, was to slow China's development of advanced AI tools that can be used in war and to undercut the country's homegrown semiconductor industry, which threatens the national security of the US and its allies.
Third, the policy enables U.S. companies to export advanced AI chips and capabilities worldwide except to countries of concern. The process will be easiest and the allowable exports highest when American companies and their partners abroad build validated secure infrastructure. Some chip exports will be exempt from the regulations.
For those countries without NVEU operators, the chip export caps are so low, according to Glueck, that PRC companies like Huawei can fill in and control the market, aided by PRC subsidies the way they did for 5G a decade ago. Others argue that Huawei has struggled to produce high-performance AI chips at scale.
Countries of concern (technically called Country Group D:5 destinations and Macau) are presumed to be ineligible from receiving advanced American AI technology. They are countries where the United States has an arms embargo, such as the PRC or Russia.
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