• On Wed., American chipmaker Nvidia publicly acknowledged that the US government has restrained the sale of advanced chips to China amid fears that the technology could be diverted to a "military end use."
  • This comes as the company reported in a regulatory filing that new licensing requirements to sell chips for high-performance graphics processing units (GPUs) to China, Hong Kong, and Russia could make it lose as much as $400M.
  • Another chipmaker, Advanced Micro Devices, Inc. (ADM) has also confirmed the new US Dept. of Commerce requirements, which it expects won't cause "material impacts" on its business as restrictions cover only one line of components.
  • GPUs were originally created to render images in video games but have become widely used in supercomputers for applications such as image recognition over the past decade.
  • This restriction intensifies the US crackdown on China's technological development as tensions simmer over the fate of Taiwan, where components designed by most US chip firms are manufactured.
  • It also comes after former Pres. Trump in 2020 imposed a ban on the sale of chips using US technology to Chinese tech giant Huawei without a special license.


Pro-China narrative

America's desperate attempts to maintain its hegemony by controlling science, technology, and trade will harm not only China but the entire global industry. Eventually, this blockade will fail as the Chinese chip sector has been steadily developing to catch up with advanced countries.

Anti-China narrative

Though American firms may be affected by these restrictions, the US government is protecting national security. The US can't rely on China to be a responsible actor, and Washington must take action to prevent Beijing from diverting US technology to military end-use.

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