The United States is proceeding with its efforts to curb the use and development of AI chips by nations worldwide. According to the latest reports, the US government is introducing rules that enforce restrictions on exporting state-of-the-art chips to foreign countries.
Although this move was initiated to restrict AI development in China and other competitors, experts suggest that the decision will have a heavy impact on the country’s tech industry. Even though the decision has created distress among China and other nation-states, the US government is moving forward with new restrictions.
The New Restrictions on AI Exports
The outgoing government of the United States, headed by Joe Biden, is implementing a new law framework that imposes heavy restrictions on the export of advanced computer chips used to develop artificial intelligence. According to the administration, the move aims to improve national security by creating a balance between security concerns about technology and the economic interests of producers.
However, the framework proposed on Monday has raised concerns and distress among chip industry executives and foreign nations, especially China. Several resources have already marked that the new law was intended to focus on China and other rivals, restricting their access to advanced technology. As expected, the announcement has received fiery pushback from China and other rivals. Furthermore, the European Union has also addressed its concern over the new approach.
It is not the first time the US has introduced laws and rules to curb the export and advancements of AI technology to China. It is a widely known fact that Beijing’s tech advancements will elevate concerns among US policymakers. Although indirect, US Commerce Secretary Gina Raimondo has revealed it to the media by suggesting that it is important to maintain the leadership of the United States in the AI world.
According to the reports Gina said, “The US leads the world in AI now- both AI development and AI chip design- and it’s critical that we keep it that way”. He also added that as AI is powerful, the widespread export of these technologies will lead to increased risk for their national security. So, the new lawsuit is designed to safeguard the advanced technology and ensure that the technology stays out of the hands of foreign adversaries. However, he also makes sure that the new law will enable the sharing of the technology and its benefits with their partner countries and allies.
Furthermore, the White House National Security Adviser, Jake Sullivan commented on this matter. He noted that the framework will ensure that the latest and cutting-edge AI technology will be developed within the US and its allies without making it extensively available like the battery and renewable energy sectors.
The Latest Framework and Rising Concerns
Although officials suggest that the new restrictions ensure national security, the rising concerns they offer are huge. Apart from the opposition from China and other countries, the tech industries in the US are also arising with their concerns over the latest rules. The Information Technology Industry Council, a leading tech industry group in the US has warned Gin Raimondo of the consequences of the decisions. They noted that this sudden decision from the Democratic administration would cause a severe impact on the global supply chain, offering heavy disadvantages for the US companies.
Another tech giant, the Semiconductor Industry Association (SIA) also pointed out that the new framework will cause disadvantages for the US tech industry. They said that the decision was being “rushed out the door” just before the presidential transition. The president and CEO of SAI said, “The new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors and AI by ceding strategic markets to our competitors”.
Along with the new businesses, the regulations cause risks and concerns regarding the existing chips that are already in use. An industry executive shared that the law will limit access to chips that are already being used in various video games, as the new law limits their use in various countries including Mexico, Portugal, Israel, and Switzerland. According to their claims, the new developments in law will create losses for the US companies, although the government assures no interventions in the already used chips. They also added that it would limit and restrict companies from building data centers in foreign countries.
According to expert opinions, the new law may also create a split between the partner countries, leading to the alienation of many. The Information Technology and Innovation Foundation (ITIF) notes that the law will pressure countries to choose between Washington and Beijing. They also note that although the US has more advanced technology, many countries may choose the side that offers fewer restrictions and interruptions causing a loss for the US.
However, according to Raimondo’s reports, the law will take effect only within 120 days. That means the Trump government has enough time to consider and reframe the rules if needed. However, as freezing the law will risk the US by allowing China to use the country’s advanced technologies, experts believe that Trump would not make drastic changes in the existing regulations.
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