CHINA WATCHU.S. Tech Leaders Want Fewer Export Curbs on AI Chips for China

By John Xie

Published 21 July 2023

Intel Corp. has introduced a processor in China which is designed for AI deep-learning applications despite reports of the Biden administration considering additional restrictions on Chinese companies to address loopholes in chip export controls. Intel’s move is part of an effort by U.S. technology companies to bypass or curb government export controls to the Chinese market as the U.S. government, citing national security concerns, continues to tighten restrictions on China’s artificial intelligence industry.

Intel Corp. has introduced a processor in China that is designed for AI deep-learning applications despite reports of the Biden administration considering additional restrictions on Chinese companies to address loopholes in chip export controls.

The chip giant’s product launch on July 11 is part of an effort by U.S. technology companies to bypass or curb government export controls to the Chinese market as the U.S. government, citing national security concerns, continues to tighten restrictions on China’s artificial intelligence industry.

CEOs of U.S. chipmakers including Intel, Qualcomm and Nvidia met with U.S. Secretary of State Antony Blinken on Monday to urge a halt to more controls on chip exports to China, Reuters reported. Commerce Secretary Gina Raimondo, National Economic Council director Lael Brainard and White House national security adviser Jake Sullivan were among other government officials meeting with the CEOs, Reuters said.

The meeting came after China announced restrictions on the export of materials that are used to construct chips, a response to escalating efforts by Washington to curb China’s technological advances.

VOA Mandarin contacted the U.S. chipmakers for comment but has yet to receive responses.

Reuters reported Nvidia Chief Financial Officer Colette Kress said in June that “over the long term, restrictions prohibiting the sale of our data center graphic processing units to China, if implemented, would result in a permanent loss of opportunities for the U.S. industry to compete and lead in one of the world’s largest markets and impact on our future business and financial results.”

Before the meeting with Blinken, John Neuffer, president of the Semiconductor Industry Association, which represents the chip industry, said in a statement to The New York Times that the escalation of controls posed a significant risk to the global competitiveness of the U.S. industry.

China is the world’s largest market for semiconductors, and our companies simply need to do business there to continue to grow, innovate and stay ahead of global competitors,” he said. “We urge solutions that protect national security, avoid inadvertent and lasting damage to the chip industry, and avert future escalations.”

According to the Times, citing five sources, the Biden administration is considering additional restrictions on the sale of high-end chips used to power artificial intelligence to China. The goal is to limit technological capacity that could aid the Chinese military while minimizing the impact such rules would have on private companies. Such a move could speed up the tit-for-tat salvos in the U.S.-China chip war, the Times reported.