U.S. President Joe Biden, in the waning days of his administration, announced new export controls on a slew of high-tech materials with the goal of boxing China out of the global artificial intelligence supply chain, prompting protests from Beijing, some American tech companies, and U.S. allies abroad.
The restrictions target U.S.-manufactured chips necessary for the development of AI technology and prevent American companies from sharing details of the most advanced AI systems with companies based in select countries, including China and Russia.
U.S. Secretary of Commerce Gina Raimondo told reporters in a briefing before Monday’s announcement that the measures are designed to “safeguard the most advanced AI technology and ensure that it stays out of the hands of our foreign adversaries.”
Under the new rules, 18 “key allies” face no restrictions on accessing chips and AI technology, a list that includes Canada, Australia, Japan, New Zealand, South Korea, and Taiwan. Roughly 120 countries, including India, the Philippines, and most European Union states, would have “limited” access to American chips under the order.
NVIDIA, a leading U.S. AI firm, criticized Biden's move, saying that “while cloaked in the guise of an ‘anti-China’ measure, these rules would do nothing to enhance U.S. security.” Beijing said the rules “maliciously suppress China.”
China posted impressive export figures this week, with worldwide exports in December increasing 10.7 per cent year-over-year.
Beijing’s total trade surplus for 2024 came in at a record-high US$992 billion, a figure likely to rankle Trump. The U.S.’s 2024 trade deficit with China is expected to settle at around US$290 billion.
Manufactured goods made up 98.9 per cent of total Chinese exports last year.
