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The US Just Made It Way Harder for China to Build Its Own AI Chips


The Biden administration announced a sweeping set of new export controls that will make it harder for Chinese companies like Huawei and ByteDance to develop cutting-edge artificial intelligence.

The US Department of Commerce introduced a sweeping package of export controls on Monday designed to weaken China’s domestic semiconductor ecosystem and undermine the country’s ability to manufacture advanced chips locally. “Such moves seriously violate the laws of market economy and the principles of fair competition, disrupt international economic and trade order and the stability of global industrial and supply chains,” Mao said at a regularly scheduled press conference. One of the most significant changes introduced is an update to the Foreign Direct Product Rule (FDP), a relatively obscure trade regulation that covers goods made in other countries with US technology, software, or components.

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