USA tightens sanctions against China. AI chip supplies limited.

Americans plan to tighten the embargo imposed on Chinese manufacturers. The new sanctions are intended to prevent suppliers from circumventing US technology sales bans.

USA tightens sanctions against China. AI chip supplies limited.
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Summary

  • The United States plans to implement further measures to prevent American integrated circuit manufacturers from selling semiconductors to China, making it more difficult for US companies to bypass technology supply bans to China.
  • The first sanctions on Chinese companies were imposed in 2019, and the US has been progressively tightening its blacklist, adding new companies or introducing additional restrictions. New sanctions are expected to be imposed by mid-October 2023.
  • The new package of restrictions aims to expand the ban on AI chip exports and equipment that enables the production of their own circuits. The new restrictions will cover technologies that were previously below the embargo limits in terms of parameters but were similar to them.
  • The AI chips targeted are circuits designed for artificial intelligence systems and chatbots. The new sanctions will not affect consumer products like laptops or smartphones, but American suppliers will be required to report every delivery of high-power circuits to the Department of Commerce.
  • Last year, the US began imposing restrictions on AI chip supplies. Nvidia was stopped from supplying two such circuits to a Chinese recipient, who could develop their own chatbots and AI data centers with them. In response, Nvidia created the A800 and H800 processors with reduced technical parameters, which fit within the limits.
  • The new sanctions aim to prevent such situations. Limits will be set according to new criteria and will consider future technology development. The US government will decide on a case-by-case basis whether supply contracts to China pose a threat to national security. The new restrictions also aim to prevent Chinese companies from accessing American technologies through companies located outside China.

The United States will take further steps to prevent American integrated circuit manufacturers from selling semiconductors to China - reported Reuters agency, citing its own sources in President Biden's administration. It will be harder for US companies to circumvent bans on technology supplies to China.

The first sanctions on Chinese companies were imposed in 2019. Since then, the Americans have been tightening their blacklist, adding new companies or introducing further restrictions. Now they are preparing new ones and according to Reuters, they will be imposed by mid-October 2023. As the agency reports, in the new package of restrictions, the USA wants to expand the ban on AI chip exports, as well as equipment that allows for the production of their own circuits. The new restrictions are to cover those technologies that so far were below the embargo limits in terms of parameters, but were similar to them.

The AI chips in question are circuits designed for artificial intelligence systems and chatbots. According to Reuters, the new sanctions will not affect consumer products such as laptops or smartphones, but American suppliers will have to report to the Department of Commerce every delivery of high-power circuits.

Last year, the Americans began to impose restrictions on AI chip supplies. Nvidia was prevented from supplying two such circuits to a Chinese recipient, who could develop their own chatbots and AI data centers with them. In response, with the Chinese market in mind, Nvidia created the A800 and H800 processors with reduced technical parameters, which fit within the limits. However, it turns out that after changing certain parameters in AI tasks, these units deliver as much power as the embargoed A100 and H100 circuits.

New sanctions may prevent such situations. Limits are to be set according to new criteria and will take into account future technology development. The US government will also decide in each case whether contracts for supplies to China do not pose a threat to national security. The new restrictions are also intended to prevent Chinese companies from accessing American technologies through companies located outside China.