Abusing export control measures and unjustly suppressing Chinese chips, China criticizes the U.S. for "overreaching"

On the 13th, the U.S. Department of Commerce released guidelines aimed at suppressing Chinese artificial intelligence (AI), which were strongly opposed by China, labeling them as typical unilateral bullying behavior, and urged the U.S. side to immediately correct its mistakes and stop discriminatory measures against China.

According to Bloomberg, on the 13th, the U.S. Department of Commerce announced the repeal of the "AI Diffusion Rules" signed during the Biden administration and issued three guidelines to strengthen export controls related to Chinese AI, stating that "using Huawei Ascend chips anywhere in the world violates U.S. export control regulations." However, the U.S. Department of Commerce later adjusted this wording to "warn the industry of the risks of using advanced Chinese computer chips, including specific Huawei Ascend chips."

A spokesperson for the Chinese Ministry of Commerce stated on the evening of the 19th that China noted the recent adjustments made by the U.S. side to the wording of the guideline press release, but the discriminatory measures and distortion of market essence in the guidelines themselves had not changed. The U.S. side abuses export control measures to impose stricter controls on Chinese chip products under unfounded accusations, even interfering with Chinese companies' use of chips produced in China. The U.S. has overreached, which is typical unilateral bullying behavior, and China firmly opposes it.

U.S. Newsweek reported on the 20th that despite the U.S. attempt to keep Chinese high-tech companies at bay, chip manufacturers like Huawei continue to grow and have made surprising advancements. The outcome of the AI race will depend on computing power, and the U.S. seems concerned about the competitiveness of Chinese technology and the impact of its products on U.S. companies that are still struggling to catch up.

Industry analysts believe that according to the guidelines released by the U.S. Department of Commerce, the primary targets of the U.S. crackdown are Huawei's Ascend series chips, and global companies, including those in China, using these AI chips from Huawei will be considered in violation of U.S. export control policies and may face penalties from the U.S. Department of Commerce.

U.S. consumer news and business channel (CNBC) stated that the guidelines were released two days after the announcement of a "U.S.-China trade agreement" during the Geneva talks, indicating that the U.S. stance on AI chips may set obstacles for further agreements with China. Bloomberg believes that the U.S. side's change in wording is insufficient to appease Beijing. Although the Trump administration revoked a series of AI chip export control measures from the Biden administration, its latest policy clearly indicates that the U.S. will continue to work to prevent advanced technology from flowing to China.

The spokesperson for the Chinese Ministry of Commerce stated on the 19th that after the U.S. released the guidelines, China engaged in negotiations and communication with the U.S. side at various levels through the China-U.S. economic and trade consultation mechanism, pointing out that the U.S. actions severely undermine the consensus reached during the high-level Geneva talks between China and the U.S., and demanded that the U.S. correct its mistakes.

NVIDIA CEO Jensen Huang has consistently criticized the AI export control measures during the Biden administration. Although the Trump administration announced the repeal of these controls, it will still insist on restricting AI exports to China.

According to U.S. Barron's on the 19th, Huang stated that the ban on NVIDIA's export of H20 chips to China is "deeply painful," and he believes that restricting NVIDIA's AI chip exports to China will actually create growth space for domestic chip companies like Huawei. Regarding the belief that simply restricting AI chip exports to China can sever China's development of AI capabilities, Huang believes that excessive restrictions on AI chip exports will, in the long run, help China accelerate the development of AI technology This policy is described as "short-sighted behavior" that cannot effectively prevent China's progress in the AI field. On the 19th, the American website "Business Insider" reported that Jensen Huang stated that the challenges posed by international competitors are absolutely crucial for the continued advancement of American AI companies. He also said, "American companies should be given the opportunity to compete in the Chinese market."

U.S. Newsweek cited a report released on the 19th by the Center for Security and Emerging Technologies at Georgetown University, which stated that China's new generation of artificial intelligence may surpass that of the United States. The report's main author, William Hennaras, said that China's various innovative approaches in AI mean that the U.S. could be left behind, and that actions taken by the U.S. may already be too late.

A spokesperson for the Ministry of Commerce stated on the 19th that the actions of the U.S. severely harm the legitimate rights and interests of Chinese enterprises, pose a serious threat to the security and stability of the global semiconductor supply chain, and significantly impact global technological innovation. Tripping others will not make oneself run faster. Such unilateral protectionist measures, which attempt to block and isolate other countries, will ultimately harm the competitiveness of the U.S. industry itself, and the result can only be that it backfires.

China urges the U.S. to immediately correct its erroneous practices and stop discriminatory measures against China. Both sides should jointly uphold the consensus reached in the Geneva high-level talks, strengthen communication of positions through mechanisms such as China-U.S. economic and trade consultations, effectively manage differences, negotiate to resolve respective concerns, and promote the establishment of a sustainable, long-term, and mutually beneficial bilateral economic and trade relationship. If the U.S. insists on going its own way and continues to substantially harm China's interests, China will take resolute measures to safeguard its legitimate rights and interests.

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