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Export restrictions implemented by Uncle Sam in late 2022 already put limits on the kinds of American-developed semiconductors that could be sold to the Middle Kingdom. Most notably, the restrictions effectivelyHowever, there has been a glaring hole in these restrictions. While they prevent Chinese companies from purchasing controlled components directly, there's nothing stopping them from smuggling the chips into the country using overseas subsidiaries.
The US Commerce Department routinely blacklists companies found to be flouting US export restrictions. It's important to remember that while we often think of these export controls as country specific, they're often targeted at companies and institutions of concern.on the US Entity List earlier this year after the company was accused of attempting"to acquire US-origin items in support of China's military modernization efforts.
Closing the loophole also wouldn't do much to stop Chinese firms from renting time on AI accelerators deployed in the cloud. The Biden administration has reportedly beenSources tell Reuters new export restrictions on the sale of AI accelerators to China are expected later this month.