[News] The U.S. Plans to Restrict China’s GPU Access via Third Countries Like Singapore and Malaysia

---

---

According to Commercial Times, citing South China Morning Post, the U.S. plans to introduce new measures before the end of this year to prevent China from obtaining advanced AI chips through third countries such as Singapore, Malaysia, and the Middle East. The report highlights that these countries are major hubs for GPU smuggling but are not currently subject to U.S. export restrictions.

These planned measures, as reported, aim to restrict global exports of GPUs used to train AI models to China, intending to close existing loopholes of third country transshipment to China. According to the report from South China Morning Post, the goal is to control the “diffusion” of U.S. products, ensuring that the U.S. maintains its leading position in the global AI sector.

Citing South China Morning Post, the report states that these new measures were jointly drafted by U.S. Secretary of Commerce Gina Raimondo and National Security Advisor Jake Sullivan, and the measures include setting national quotas on GPU exports and implementing a global licensing system with reporting requirements.

These new measures have not yet been finalized. However, once confirmed, they will represent the latest round of U.S. control measures against China. In anticipation of stricter regulations, the report notes that China’s chip imports surged by 14.8% in the first 11 months of this year.

The planned new measures build on a series of prior sanctions. As highlighted in the report, the U.S. Department of Commerce announced on December 2nd that 140 Chinese semiconductor-related companies were added to the “Entity List,” and export to these companies are curbed.

According to Reuters, HBM shipments to China are restricted. Additional curbs on chipmaking equipment have also been introduced, including export controls on chipmaking tools manufactured in countries such as Singapore and Malaysia.

Aside from export restrictions, the U.S. has also announced tariff hikes on Chinese goods. On December 11th, the Office of the U.S. Trade Representative (USTR) stated that the Biden administration will impose Section 301 tariffs on solar wafers, polysilicon, and certain tungsten products. Tariffs on Chinese solar wafers and polysilicon will be increased from the current 25% to 50%, while tariffs on tungsten products will be raised to 25%. These changes are set to take effect on January 1, 2025.

Read more

• [News] U.S. Reportedly Set to Impose New AI Chip Restrictions on China Before Christmas
• [News] Latest U.S. Chip Curbs on China Targets 140 Companies, Led by Chip-tool Giant Naura Technology

(Photo credit: NVIDIA)