On October 17, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced an expansion of existing export controls concerning artificial intelligence (AI) chips specifically directed at China. These newly introduced regulations were described as strengthening the rules that were initially implemented in October 2022, aimed at restricting China's capacity to acquire and produce high-end chips deemed critical for military purposes.
Alan Estevez, the Under Secretary of Commerce for Industry and Safety, stressed the significance of export controls as a potent national security tool. These new rules were shaped by an ongoing evaluation of U.S. national security concerns related to China's military modernization and civil-military fusion.
One notable aspect of the updated rules involves the establishment of "performance thresholds" for AI chips that can be exported from the United States. Formerly, the highest-performing chips from major companies like Nvidia and AMD were the primary targets of export controls, while lower-tier models could still be exported to China. Under the revised regulations, even chips like Nvidia's A800 and H800 will be prohibited from export to China. This shift has significant implications, given that China constitutes one of Nvidia's largest markets, alongside Taiwan and the United States.
Furthermore, the updated rules introduce a requirement for notifications when exports of certain chips slightly fall below the performance threshold, thereby enabling the government to make decisions on whether the transaction can proceed.
In addition to these constraints, the U.S. government has introduced an exemption to facilitate the export of chips intended for consumer applications. To prevent potential circumvention of the rules, BIS has established a framework that includes the introduction of global licensing requirements for the export of controlled chips to any U.S.-embargoed country. It also outlines the creation of new indicators to identify restricted chips, the implementation of notification requirements for the export of high-end gaming chips, and a call for public input on various related subjects.
Furthermore, the government has intentions to control exports of manufacturing equipment and materials used in the production of high-end chips. These updated regulations will take effect from November 16, 2023, with a public solicitation period commencing 60 days later. This revision of export conditions comes at a time when Chinese technology company Baidu announced the release of version 4.0 of its artificial intelligence chatbot, Ernie, which it claims is on par with OpenAI's ChatGPT.
