The US Expands Export Controls on AI Chips to China
The United States Department of Commerce’s Bureau of Industry and Security (BIS) has issued a notice on October 17, expanding export controls on artificial intelligence (AI) chips to China. The goal is to restrict China’s access to high-end chips critical for military advantage.
Under Secretary of Commerce for Industry and Security Alan F. Estevez emphasized the importance of export controls as a national security tool, stating that the updates build on the assessment of US national security concerns posed by China’s military-civil fusion and military modernization.
New Performance Threshold and Restrictions
One of the updated rules is the introduction of a “performance threshold” on exported chips. Previously, only the highest-performing chips from leading companies like Nvidia and AMD were targeted by export controls. However, the new rule will now embargo even lower-performing chips such as Nvidia’s A800 and H800 from being exported to China.
The rule also requires notification for exporting “certain additional chips” just below the performance threshold, with the government determining whether the transaction can proceed.
Exemption for Consumer Applications
Despite the restrictions, the US government plans to introduce an exemption that allows the export of chips for consumer applications.
Preventing Circumvention and Controlling Exports
BIS has also released a framework to prevent circumvention of these rules. It includes implementing a worldwide licensing requirement for controlled chip exports to any US-embargoed country, establishing new red flags to identify restricted chips, introducing notification requirements for high-end gaming chip exports, and soliciting public comment on related topics.
The administration also aims to control exports of manufacturing equipment and materials used in producing high-end chips.
Effective Date and Public Comments
The new rules will take effect on November 16, 2023. The public has 60 days from this date to provide comments on the rules.
Hot Take: China Faces Enhanced Restrictions on AI Chip Exports
The US government has expanded export controls on AI chips to China, aiming to limit China’s access to high-end chips essential for military purposes. The updated rules introduce a performance threshold, embargoing even lower-performing chips previously allowed for export. However, an exemption will permit the export of chips for consumer applications. BIS has also released a framework to prevent circumvention and control exports of manufacturing equipment. These measures will be effective from November 16, 2023. The move comes as Chinese tech company Baidu unveils its AI chatbot Ernie 4.0, positioning it as a competitor to OpenAI’s ChatGPT.
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