The Flaws in America’s Regulations on AI Tech Sales to China: A Deep Dive into the Loopholes

The Flaws in America’s Regulations on AI Tech Sales to China: A Deep Dive into the Loopholes

Why America’s controls⁢ on sales of AI tech ​to China are so ineffective

GINA RAIMONDO expressed her frustration at the ⁣Reagan National Defence Forum in California in‌ December. The Department ​of Commerce, which she⁤ leads, had recently tightened restrictions on the sale of American semiconductors to China. However, Nvidia, the world’s most valuable chipmaker, had ​immediately started developing a new, slightly less​ powerful artificial-intelligence (AI)⁢ chip for the Chinese market, to which the restrictions would ⁤not apply. “If you‍ redesign a chip…that enables [China] to do AI, I’m going to ⁣control it the very next day,” Ms Raimondo warned.

That was bombastic, given that it had taken her‌ department a‌ full year to rework the restrictions to cut off Nvidia’s previous ​workaround. But America’s five-year campaign against Chinese⁣ technology is​ intensifying. Earlier this month it was reported that Jensen ‍Huang,‍ Nvidia’s chief executive, ​and two fellow chip bosses had been summoned to testify in Congress ⁣about their Chinese business. On January 19th ⁤ABB, a Swiss industrial group, revealed that American lawmakers were⁢ investigating its links with China. ABB said it was co-operating⁢ with the investigation;⁢ Nvidia has said that it is working closely with the government to ​ensure compliance with the export controls. ⁤

Neither Democrats nor Republicans are likely to relent. In a presidential-election year‌ Joe Biden, the unpopular Democratic president, cannot afford to look ⁣weak on China. His Republican predecessor and main rival, Donald Trump, has long been America’s China-basher-in-chief. China ‌hawks in Washington want to stymie Chinese ‌efforts both to get around the rules and ⁣to recreate ‍the necessary technological capabilities at home.‍ However, the mixed record of export controls so far shows why harsher measures will be difficult to‍ design—and not necessarily more successful.

2024-01-21 08:53:32
Source‍ from www.economist.com

Exit mobile version