Illustration: Chen Xia/GT
The United States is reportedly considering extending chip export restrictions to countries other than China. The U.S. is preparing new rules aimed at restricting the sale of advanced artificial intelligence (AI) chips in certain regions of the world, the Wall Street Journal (WSJ) reported on Friday, according to sources familiar with the matter. It was reported. China’s ability to access them. These measures, if implemented, are expected to further disrupt global semiconductor manufacturers and supply chains, highlighting the erratic and unsustainable nature of Washington’s export control policies.
The WSJ article reports that “Washington plans rules to restrict semiconductor shipments to some countries accused of supplying Beijing.” However, China is both a major producer and consumer of the global semiconductor supply chain and engages in regular reciprocal trade with other countries, reflecting the interconnected and interdependent nature of global supply chains. .
Framing some countries as “backdoors” for China to access advanced chips is not only misleading but also unwarranted, especially in the absence of concrete evidence. Such a narrative oversimplifies the complex dynamics of global semiconductor trade cooperation and risks undermining the deeper reality of international cooperation and interdependence in the global semiconductor industry. Discussions on this issue need to move beyond geopolitical rhetoric and recognize the complex and collaborative nature of the global technology ecosystem.
The global AI chip market is currently experiencing unprecedented growth. Gartner predicts that worldwide revenue from AI semiconductors is expected to reach $71 billion in 2024, an impressive 33% increase compared to 2023. This rapid growth has understandably attracted the attention of many tech giants, all looking to grab a share of the lucrative profits. Opportunities presented by the rapid expansion of AI.
While Nvidia continues to dominate the AI chip industry, competition is rapidly increasing. A recent report in the New York Times focused on the rise of companies such as Amazon, Advanced Micro Devices, and several startups, saying that these companies are “particularly at the stage of AI development known as inference. “Offering a reliable alternative to Nvidia’s chips.”
No chip manufacturer would willingly accept restrictions that would prevent them from selling their products in a major market. The U.S. government’s efforts to restrict China’s access to advanced AI chips risk undermining the financial interests of American companies, many of which rely on global markets, including China, for growth. In a world of high-stakes international competition, voluntarily sacrificing profit opportunities is a risky move that can undermine a company’s competitive advantage. If the U.S. further tightens its semiconductor regulations and expands them to more countries outside of China, the economic impact for semiconductor manufacturers, especially U.S. companies bound by Washington’s policies, will be significant. Dew. The more restrictive the Washington government imposes, the greater the potential loss to the U.S. chip industry.
The move comes despite media reports suggesting the US may be considering extending AI chip regulations beyond China to prevent imports of advanced chips from third countries. will not hinder the development of China’s AI and semiconductor industry. Rather, such actions are likely to accelerate China’s drive for independence and innovation. Far from stifling progress, such restrictions could encourage further efforts to develop indigenous technology within China.
The WSJ’s reporting on possible expansion of U.S. regulations only underscores the counterproductive effects of previous measures imposed by the U.S. government. Far from slowing the growth of China’s AI and semiconductor industries, these regulations appear to have unintentionally accelerated their development. The more the United States tightens its grip, the more China will step up its efforts to reduce its dependence on foreign technology. If the U.S. government continues down this counterproductive path and extends its restrictions to even more regions outside of China, the strategic impasse will only deepen. Such actions would suggest that the U.S. government has exhausted its ability to come up with more effective solutions and is resorting to more desperate and even hysterical measures to continue its failed policies. . This approach risks undermining the economic interests of American businesses and the industry as a whole, as more companies are forced to pay the price for policies that prove ineffective.
