The Biden Admin wants to prevent China from further accessing American AI chips and other SoC-making tools from the United States.
To do this, the US government is considering a major loophole that allows Beijing to take advantage of American artificial intelligence chips through units that are located overseas.
Biden Admin Wants to Stop China From Accessing American AI Chips
Four anonymous individuals familiar with the US government's plan to prevent China from accessing American AI chips claim that the Biden Administration will tighten its AI chip and chipmaking tool shipment restrictions.
The US already unveiled these regulations in 2022, which shook relations with the Chinese government.
The US government left China's overseas subsidiaries with uncontrolled access to AI semiconductors and SoC-making tools in these initial restrictions.
Because of this, Chinese companies can still smuggle or access these artificial intelligence technologies remotely, making it a major loophole.
Now, the Biden Administration wants to close this loophole with stricter regulations that can prevent even Chinese companies' overseas subsidiaries.
"Absolutely, Chinese firms are purchasing chips for use in data centers abroad," explained Center for Strategic and International Studies Director Greg Allen via Reuters.
For the past few years, the US government has been trying to halt the rise of China's artificial intelligence capabilities as officials believe that Beijing is using AI chips and other similar technologies to improve its military.
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Other Efforts of the US to Hamper China's AI Industry
In August, Fortune reported that the Biden Admin signed an executive order that blocks and restricts U.S.-based investments in China's AI industry.
US officials said this legislation will hamper Beijing from enhancing its military's access to advanced technologies, especially artificial intelligence and AI chips.
This executive order covers microelectronics, quantum information technologies, artificial intelligence, and advanced computer chips.
Senior Biden Admin officials explained that this effort was established because of the government's national security goals. They added that the order seeks to prevent China from using U.S.-based investments to upgrade its military.
But, the executive legislation still aims to preserve broader levels of trade that are both critical for the economies of the two super countries.
"The executive order issued today really represents the start of a conversation between the US government and industry regarding the details of the ultimate screening regime," said J. Philip Ludvigson, the former Treasury official.
If you want to learn more details about this effort of the Biden Admin to halt China's access to American AI, AI chips, and AI investments, you can click this link.
