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  • By The Financial District

China Howls As U.S. Bans Nvidia's Exports Of AI Chips

The Chinese government on Thursday, Sept. 1, 2022, called on Washington to repeal its technology export curbs after chip designer Nvidia Corp. said a new product might be delayed and some work might be moved out of China because of the ban, Joe McDonald reported for the Associated Press (AP).

Photo Insert: Nvidia said buyers of the A100 and the development of the newer H100 might be affected.

The latest controls add to mounting US-Chinese tension over technology and security. American officials say they need to limit the spread of technology that can be used to make weapons.

Nvidia said it was told Friday it needs a US government license to export any product with performance equal to its A100 graphics processing chips or better to China, Hong Kong or Russia. It said buyers of the A100 and the development of the newer H100 might be affected. Nvidia said it may be required to “transition certain operations out of China.”

The company said it was asking the US government for exemptions for its development and support activities. It said it would try to meet Chinese customer needs with products that aren’t subject to license requirements.

It said the company may seek a license for customers that need them but “has no assurance” the US government will agree.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

China’s Commerce Ministry accused Washington of abusing export controls to limit semiconductor sales to China. It said trade curbs would disrupt supply chains and global economic recovery. China has failed to import US farm products worth billions of dollars in a deal cut with defeated US president Donald Trump.

“China firmly opposes this,” said a ministry spokesperson, Shu Jueting. “The US side should immediately stop its erroneous practices, treat companies from all countries equally, including from China, and do more to contribute to world economic stability.”

Business: Business men in suite and tie in a work meeting in the office located in the financial district.

US officials increasingly worry about Chinese technology development as both a strategic threat and a potential challenge to American industrial leadership. Washington has tightened controls and lobbied allies to limit Chinese access to the most advanced chips and tools to develop its own.

China is spending heavily to develop its fledgling producers but cannot make high-end chips used in the most advanced smartphones and other devices. Not even Chinese state-owned enterprises (SOE) under the control of the Communist Party of China (CPC) could achieve such scientific advances.

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