New US AI chip export rules tighten grip on China, Beijing calls it 'flagrant violation'

The United States government announced on Monday (Jan 13) that it would introduce tighter restrictions on the export of artificial intelligence (AI) chips and related technology. The move, aimed at limiting access to advanced AI technology for China and other rival nations, comes during the final days of Joe Biden's presidency.

Under the new regulations, the number of AI chips exported to most countries will be limited, while unrestricted access to US AI technology will be granted to America’s ally nations. However, exports to China, Russia, Iran, and North Korea will remain blocked.

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“The US leads AI now—both AI development and AI chip design—and it’s critical that we keep it that way,” said US Commerce Secretary Gina Raimondo.

White House National Security Advisor Jake Sullivan added that the rules aim to “make it hard for our strategic competitors to use smuggling and remote access to evade our export control.”

He also said that they provide “incentives for our friends and partners around the world to use trusted vendors for advanced AI.”

The updated regulations will take effect in 120 days, allowing the incoming Trump administration to review or adjust the policy.

The new rules include controls over the export, re-export, and in-country transfer of chips. Additionally, AI data centres will be required to meet stricter security standards to qualify for importing chips.

China’s Commerce Ministry condemned the decision, calling it “a flagrant violation” of international trade rules and pledging to “firmly safeguard” its interests.

The policy change has also faced criticism from within the industry. Nvidia, a leading chipmaker, criticised the regulations, labelling them “sweeping overreach”.

The company said that the restrictions target “technology that is already available in mainstream gaming PCs and consumer hardware,” adding that the rules “would do nothing to enhance US security.”

In a blog post, Nvidia added that the first Trump administration showed how the US could succeed through “innovation, competition, and by sharing our technologies with the world—not by retreating behind a wall of government overreach.”

(With inputs from agencies)