Team Biden Moves to Close Loopholes In AI Chip Export Regulations To China

President Joe Biden-led administration is preparing to crack down on the export of AI chips to China, targeting loopholes that allow circumvention of government restrictions. This move is part of the Biden administration’s upcoming actions to limit more AI chip exports.

According to a Reuters report, the new rules, expected to be unveiled this week, aim to stop the export of certain AI chips that fall just under the current technical parameters. In addition, companies will be required to report shipments of certain other chips. The U.S. Department of Commerce, which oversees export controls, is yet to comment on the matter.

Last year, government restrictions prevented Nvidia Corp NVDA from shipping two of its most advanced AI chips to Chinese customers. However, the company released less advanced variants that got around the U.S. export controls. The new guidelines may target similar workarounds.

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While consumer-oriented chips will be exempt from the new restrictions, companies will need to inform the Commerce Department when they are fulfilling orders for the most powerful consumer chips to ensure they are not used in ways that threaten national security.

The updated rules are also designed to evolve with technology. Companies will need to notify the government about semiconductors whose performance is slightly below the guidelines before they are shipped to China. The government will then decide on a case-by-case basis whether they pose a national security risk.

The Biden administration has reportedly informed Beijing of its plans to update these contentious rules, as part of a policy aimed at stabilizing relations between the two superpowers.

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