Following weeks of increased chip export policy, China responds to Washington's ongoing efforts to levy semiconductor supply to China, warning that such transgressions could harm supply chains and the global economy.
The US government proposed and is currently implementing a new regulation in early September that would limit the sale of computer chips required for supercomputers and artificial intelligence to Russia and China.
Reuters reported that new laws prohibit US chip companies from exporting chipmaking equipment to Chinese factories that manufacture advanced semiconductors using sub-14 nanometer processes unless the merchants obtain US Commerce Department licenses.
Additional sanctions against China would almost certainly be included in the regulations. The restrictions may also be altered, and the rules may be published later than expected.
Chip Supply Cuts Aim to Suppress China AI Development
According to the Financial Review, China has criticized expanded US strict limits on its access to semiconductor technology. Following weeks of strikes on China's chip supply, the Biden administration announced additional export restrictions against China last Friday, Oct. 7.
Following the same report, government initiatives have only exacerbated brewing tensions between the two massive economies. Furthermore, supply constraints are said to have a detrimental effect on the semiconductor industry, which has seen a drop in demand following shortages earlier this year.
Read Also: US Bans NVIDIA From Exporting AI Chips to China and Russia
Washington's proposed measures are designed to stifle China's ongoing efforts to expand its own semiconductor industry. Previous reports have also confirmed that the Asian superpower's technological advancements are intended to strengthen its armed forces' grip on potent computer technologies.
Thanks to chips developed by American companies, China is moving closer to its objective of turning into a global force in artificial intelligence by 2030. Limiting Chinese military advancements in AI and other technologies will necessitate the adoption of novel forms of export control measures.
Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler has recently commented that China has been using its technological capabilities to "monitor, track, and surveil their own citizens, and fuel its military modernization.
China Criticizes US Chip Restrictions
According to an official briefing transcript, Chinese Foreign Ministry spokesperson Mao Ning said over the weekend that the initiatives, which go into effect this month, are unfair and will "also hurt the interests of US companies." They "deal a blow to global industrial and supply chains, as well as world economic recovery," she told the press.
Yahoo reports that the changes come at a tough period for the microprocessor industry, which is experiencing a significant drop in demand for PC and smartphone components. Shares of many of the world's largest semiconductor companies fell on Friday following reports that the downturn may be worse than previously thought.
With chip manufacturers recovering from a year of falling stock prices, reports indicate that when the new rules take effect, it will be more difficult for providers of chips used in Chinese supercomputers and related equipment to obtain permission to fill orders.
Related Article: US Chips Are Helping China's Military to Become an 'AI Powerhouse' - New Study Claims
