2023-10-14 07:20:00
The Biden administration has prepared to publish new sanctions that seek to stop the “smuggling” of Artificial Intelligence chips to China. This is because many companies in the country are taking advantage of a loophole in previous sanctions to continue purchasing solutions that use US technologies.
An example of this is that Chinese companies use their subsidiaries outside of China to buy these chips and, shortly following, ship everything to the country.
In other cases, companies end up setting up their data processing structures outside of China, allowing remote access.
Archyde.com found that chips barred by US sanctions might be easily purchased in the southern Chinese city of Shenzhen.
According to some market analysts, this loophole used by the Chinese is very difficult to close, since it is also possible to use shell companies to purchase AI chips.
Greg Allen, director of the Center for International Strategic Studies, highlighted that some countries end up helping China.
Chinese companies are buying chips for use in overseas data centers, and Singapore is becoming a major cloud computing hub.
So far, the US Department of Commerce has not yet commented on the matter. The Chinese government warns that the escalation of sanctions might result in retaliation.
Still, there is a certain disbelief regarding the effectiveness of new sanctions.
Chinese people can legally access the same chips from anywhere in the world. There are no rules on how they can be accessed and trying to veto this might cause diplomatic incidents with many countries.
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