China Threatens U.S. With Nvidia Chip Delay If Tech Export Reduction Not Dropped
BEIJING - China threatened the United States with a delay of a new product launch from Nvidia if it did not stop with the technology export reduction on Thursday, September 1st, and stated that some products might have to leave Chinese manufacturing lines.
According to AP News, the latest economic mechanisms, meant to reduce trade practices with China and limit the flow of tech that can be weaponized, have exponentially added weight to U.S.-Chinese tensions over tech and security concerns.
U.S. officials are constantly in a state of worry about Chinese tech development projects, as not only strategic threats but also a direct ploy to challenge American industrial leadership.
Nvidia was instructed in the previous week that it would need an export license, issued by the United States in order to send its products that are equal in caliber to its A100 GPU to Russia, Hong Kong, and China.
U.S. securities regulators on Thursday looked as though they were about to partially give in to China's demands and offer an amended disclosure on export flows through March on specific chips, allowing Nvidia to supply them to their United States customers.
The new chips from Nvidia are designed for AI applications as well as data center processing, which puts them in a higher-end demand bracket.
Advanced Micro Devices (AMD) also stated the requirements of new licensing from the United States Department of Commerce and has blocked shipments of its high-end processors to Russia and China. However, AMD is not anticipating material or product delays at this time.
The Chinese Commerce Ministry has presented allegations that the U.S. is attempting to disrupt the supply chain and economic recovery on a global scale by utilizing export controls to limit the sales of semiconductor chips to China.
"China firmly opposes these actions... The U.S. side should immediately stop its erroneous practices, treat companies from all countries equally, including from China, and do more to contribute to world economic stability..." - Shu Jueting, Chinese Commerce Ministry Spokesman
China has been spending massive amounts of money to develop its technology producers but has been reluctant to develop high-end semiconductor chips which are used in top-of-the-line devices such as smartphones and others. Due to rumors surrounding alleged international espionage attempts by China, Washington continues to tighten control mechanisms as well as appeal to its allies to limit access for China to the most advanced tools and chips, so it would have to develop its own.
Nvidia stated on Wednesday, August 31st, that it may be required to move certain operations of its enterprise out of China, and asked for assistance from the United States for exemptions for research and development support functions. It also said it would attempt to meet customer needs in China with other products which aren't subject to licensing requirements.
According to Reuters, the bulk of Nvidia chip manufacturing is done at Taiwan Semiconductor Manufacturing Co.
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