US to introduce new restrictions on China's access to cutting-edge chips

The U.S. government has imposed similar export controls on China for years aimed at limiting its ability to make advanced silicon, but those controls have apparently not stopped Huawei from developing competitive chips to form large models of AI.

The Chinese tech giant, temporarily crippled by U.S. sanctions five years ago, sent samples of its latest AI training chip, called Ascend, to customers in September, according to the South China Morning Post. Companies testing Ascend reportedly include ByteDance, TikTok's Chinese parent company, which would form a large model primarily using Ascend. Baidu, which is China's leading search engine and has developed autonomous driving systems, recently placed an order for Huawei chips, moving away from U.S. chip giant Nvidia, according to Reuters. (Nvidia declined to comment.)

Export restrictions aimed at curbing China's AI sector began during the first Trump administration. In 2019, several promising Chinese AI companies were added to the Entity List, meaning U.S. companies, including chipmakers like Nvidia, would be required to obtain a special license to do business with them. That was followed by restrictions on sales of chips made with U.S. technology to Huawei, China's dominant telecommunications company and a leading smartphone maker.

The Biden administration tightened controls in October 2022, limiting exports to China of cutting-edge GPU chips, including those made by Nvidia, a move aimed at restricting the ability of any Chinese company to train the most advanced AI models. more powerful. The rules were tightened a year later to close loopholes that still allowed Chinese companies access to some advanced chips.

It can be difficult to gauge the impact of U.S. sanctions on chips, and some experts question whether the controls are incentivizing China to move more quickly into chipmaking itself, reducing its reliance on chips. American companies.

In late 2023, Huawei unveiled the Mate 60, a smartphone with an advanced chip from Chinese chipmaker SMIC. The announcement caused a sensation in Washington, as it suggested that SMIC had made substantial progress in advancing its own manufacturing techniques. (Further analysis indicated that Huawei and SMIC were still dependent on foreign suppliers.)

But a report released this week by the Center for Strategic and International Studies, a Washington, D.C.-based think tank, says the Chinese government had already begun increasing its investment in domestic chip manufacturing before the U.S. government began to restrict the country's access to advanced semiconductors. He also noted that China had made greater progress in sectors not subject to export controls, such as solar cell and electric vehicle manufacturing.

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