U.S. Controls AI Chip Exports, Bans Sales to China, Russia, and Others, Exempting Taiwan, Japan, and South Korea | WPN World People News

On January 13th, just before the Biden administration's departure from office, the U.S. announced a global export control on AI chips. Taiwan, Japan, South Korea, and 18 other countries were exempted, while China, Russia, Iran, and others faced a total ban. This move has been strongly condemned by China's Ministry of Commerce and has sparked backlash from several U.S. chip companies. AI chip giant NVIDIA criticized these measures, arguing that they would only undermine America's leadership.

A week before the end of the Biden administration, the U.S. imposed a strict three-tiered export control system for AI chips. The first tier includes Taiwan, Japan, South Korea, and 18 other key allies, allowing these countries unrestricted access to U.S. AI chips. The third tier covers countries like China (including Hong Kong and Macau), Russia, Iran, and North Korea, where the U.S. has banned the export of advanced AI chips. The second tier includes other nations, which will face restrictions on the total computing power of chips they can acquire, primarily aimed at preventing countries like China and Russia from obtaining advanced technology.

The first tier includes the U.S. and 18 key allies: Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. The third-tier restricted countries include China (including Hong Kong and Macau), Russia, Iran, North Korea, Venezuela, Nicaragua, Syria, and about 23 other countries. Most other countries fall under the second tier, requiring prior authorization to purchase advanced AI chips.

According to reports, the measures are designed to prevent China from obtaining advanced AI chips through third-party countries, particularly those in the Middle East. Despite the U.S. Department of Commerce offering a 120-day consultation period for industries to adapt, American companies are dissatisfied with the policy.

NVIDIA's Vice President of Government Affairs, Finkel, criticized the regulations, stating that they would not enhance U.S. security but instead would weaken competitiveness and waste America’s technological advantage. Many U.S. chip companies believe the new rules will hinder economic growth. Following the announcement, global stock markets generally declined.