China state-controlled newspaper claims U.S. engages in “catch me if you can” game with Nvidia over regulations

China state-controlled newspaper claims U.S. engages in “catch me if you can” game with Nvidia over regulations

SHANGHAI, Nov 11 (Reuters)⁢ – ⁣U.S. curbs on China ‍have created a game of “catch me if you can” with U.S. chip giant Nvidia and other companies, which affect⁤ the interests of both countries‌ and will accelerate ‌Chinese ⁣innovation, ⁢the Global Times⁢ newspaper said on Saturday.

The chip industry newsletter SemiAnalysisas reported⁢ earlier that Nvidia plans to⁣ release new artificial intelligence ‍chips aimed at the Chinese ⁤market less than a month after the U.S. tightened rules on ⁣selling high-end AI chips to China.

“The⁢ several rounds between Nvidia and the⁣ U.S. government are the‍ story of a high-tech enterprise that does legitimate⁢ business but ⁢encounters strong political interference in free trade, and tries every⁤ means to ensure its own survival‌ and development,” the state-controlled ‍newspaper said in a commentary.

“For commercial ‍companies, this is not funny at all, and even a bit sad.”

The U.S. restrictions on chips, which seek ‌to ⁢stop China from getting cutting-edge⁤ U.S. technologies to strengthen its military, were “not ‍only harmful to China’s interests, but also to the U.S.”,⁤ the newspaper said.

“What⁢ the U.S. government has done makes normal and legitimate transactions tremble with⁢ fear, creating ⁣an​ intense atmosphere in the market,” it said.

Last‍ month, Nvidia, whose graphics processing units (GPUs) dominate the AI market, said new U.S. export restrictions would​ block⁣ sales of two high-end AI chips, the A800 ⁢and H800, that ⁤it created for the Chinese market last year to comply with previous ⁢export rules.

The new rules put a ‍cap on how much computing power a chip can pack into a ​small size. ⁤They include what analysts call a ⁢”grey zone” in⁤ which chips⁢ might still be allowed to ⁢ship to China but will require a license.

SemiAnalysis said the new Nvidia chips are called the‌ HGX H20, L20 PCIe and L2 PCIe and the company ⁣could ‍announce them⁣ on Nov. 16. The chips include⁣ most of Nvidia’s newest features for⁢ but have had some computing power measures cut back, according⁣ to the newsletter. Nvidia declined ‌to comment.

The Global Times said U.S.⁤ companies had been looking for “workarounds” ⁤to comply with the regulations.

“It is​ not difficult to ​imagine that as long as ‌Washington remains committed⁤ to ‘choking’ China, the​ game ⁣of⁢ ‘catch me if you can’ ⁤will continue indefinitely,” the newspaper said.

“In⁣ this sense, the ‘loopholes’ that the U.S. is trying to close will never be completely fixed, and they will only find themselves in an awkward​ situation⁣ of pressing one end of the gourd only to make⁤ the other end float up.”

“This ⁢will‌ inevitably force and accelerate the process of ‍independent innovation in high-tech industries in ‌China.”Reporting by ‍Shanghai⁣ Newsroom;​ editing by⁣ Robert⁣ BirselOur Standards: The Thomson Reuters ‍Trust Principles.Opinions expressed are those of⁢ the⁤ author. ‌They do not reflect the ‍views of Reuters News,​ which, under the Trust Principles, is ⁣committed to integrity, independence, ‍and ‍freedom from bias. Acquire Licensing Rights, opens new tab

Article ‌from www.reuters.com rnrn

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